NEW YORK, Jan 28, 2026, 10:26 (EST) — Regular session
- Dow hovered near 49,000, showing little movement following a drop led by UnitedHealth on Tuesday
- The S&P 500 briefly surged past 7,000, driven by strength in chip stocks.
- Fed decision expected at 2 p.m. EST; Meta, Microsoft, Tesla, and IBM set to release earnings after the bell
The Dow Jones Industrial Average (.DJI) held steady on Wednesday morning, lingering near 49,000 as traders eyed the Federal Reserve and a flurry of late-day earnings reports from major companies. By 10:26 a.m. EST, the blue-chip index dipped 3.56 points, or 0.01%, to 48,999.85. Meanwhile, the S&P 500 inched up 0.16%, and the Nasdaq climbed 0.39%. 1
The Dow stumbled even as the S&P 500 briefly cleared 7,000—a milestone that’s taken on a life of its own as a trading cue. Chip stocks rallied, buoyed by upbeat reports from ASML and SK Hynix, sparking renewed hopes for AI-related spending. “These big round numbers can be difficult psychological tests for the market,” said Jeff Buchbinder, chief equity strategist at LPL Financial. 2
The Fed is set to release its policy decision at 2 p.m. EST, with Chair Jerome Powell scheduled to speak half an hour later. Markets are pricing in no change to interest rates, while investors look for clues in the Fed’s language, especially after officials’ forecasts revealed stark disagreements on whether and how many rate cuts might happen in 2026. “There is no urgency to lower rates aggressively,” noted Seema Shah, chief global strategist at Principal Asset Management. 3
Tuesday highlighted why the Dow often trails when tech leads the charge. The index dropped 0.83%, dragged down by UnitedHealth plunging 19.6% following a Medicare-related proposal that shook insurers and a gloomy 2026 revenue outlook. Humana slid 21%, while CVS Health dropped 14.2%. “There’s a little bit of a bifurcated market today,” said Phil Blancato, chief market strategist at Osaic Wealth. 4
UnitedHealth’s decline wiped out about 420 points from the Dow, according to Reuters calculations. Boeing also weighed on the index as investors digested its quarterly results. 5
Economic data gave reason for pause, but buyers kept pushing the rally. The Conference Board reported its consumer confidence index dropped 9.7 points in January, landing at 84.5—the lowest since 2014. Its expectations gauge also slipped further below levels that typically warn of recession risk. 6
Early Wednesday, individual stocks led the action while indexes stalled. Texas Instruments jumped following its forecast for first-quarter revenue and profit that topped estimates. Starbucks also climbed after reporting a stronger-than-expected rise in comparable sales. AT&T gained after projecting annual profit beyond forecasts, and GE Vernova rallied after raising its revenue outlook. 7
The Dow works differently. It’s price-weighted, so stocks with higher prices influence the index more than their market size might indicate. That means big moves in just one or two stocks can overwhelm what’s happening across the rest of the market. 8
The setup works both ways. Should Powell dampen expectations for rate cuts, or if early big tech earnings disappoint on AI investment, the Dow could quickly slide — especially with health insurers continuing to drop.
Traders will turn their attention later Wednesday to the Fed statement and Powell’s press conference. After the close, earnings reports from Meta, Microsoft, Tesla, and Dow component IBM are due.
