New York, Jan 29, 2026, 17:05 ET — After-hours
- The Dow rose 0.11% by the close, but the S&P 500 and Nasdaq slipped lower.
- Microsoft tumbled about 10%, dragging tech down as investors grew wary of hefty AI investments.
- Apple topped estimates after the bell. Traders now focus on the Jan. 30 funding deadline and next week’s jobs report.
The Dow Jones Industrial Average eked out a small gain on Thursday, rising 55.96 points, or 0.11%, to 49,071.56. The S&P 500 slipped 9.02 points to 6,969.01, while the Nasdaq Composite dropped 172.33 points to 23,685.12, weighed down by a steep selloff in Microsoft. Shares of Microsoft plunged about 10%, marking their largest one-day percentage decline since March 2020. On the flip side, Meta Platforms surged over 10% following its earnings report. (Reuters)
The split is crucial now as investors try to value the AI buildout amid earnings season. Microsoft’s cloud update rattled nerves, suggesting AI-related spending might take longer to pay off. Tesla and Meta both flagged increased capital expenditures — or “capex,” Wall Street’s term for investments in long-term assets like plants and data centers. “Microsoft disappointed and there are some genuine concerns that AI investments will eat the software companies’ lunches,” said John Praveen, managing director and co-CIO at Paleo Leon. (Reuters)
Rates remain the driving force behind the trade. On Wednesday, the Federal Reserve held its benchmark rate steady at 3.5%-3.75%, offering little fresh insight on when cuts might begin. Traders continue to eye June for the first move. “Whether you were bullish or bearish going into the press conference you walked away feeling about the same,” said Michael James, an equity sales trader at Rosenblatt Securities. (Reuters)
Oil prices pushed sentiment higher. Brent futures jumped $2.31, or 3.4%, closing at $70.71 a barrel. U.S. West Texas Intermediate climbed $2.21, or 3.5%, ending at $65.42 amid worries that a U.S. strike on Iran could disrupt supply lines. “The immediate (market) concern … it closes the Strait of Hormuz,” said John Evans, analyst at PVM. (Reuters)
After the closing bell, Apple, a Dow component, outpaced Wall Street forecasts. CEO Tim Cook described demand for the newest iPhone lineup as “staggering.” Shares in Apple climbed roughly 0.7% in after-hours trading. iPhone revenue hit $85.27 billion, surpassing expectations, while sales in Greater China surged 38% to $25.53 billion. However, the wearables segment fell short of forecasts, with Cook citing supply issues for the AirPods Pro 3. (Reuters)
Friday’s session will reveal if Apple can rally the Dow’s top names after a tough day for software stocks. Since the Dow is price-weighted, big moves in its higher-priced components can shift the index more than their market value alone would indicate.
New unemployment claims dipped to 209,000 last week, while continuing claims dropped to 1.827 million. Still, economists warn seasonal distortions around the year-end make the data less clear. “There is no evidence that layoffs are picking up,” said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets. With a government funding deadline looming on Jan. 30, another shutdown risk clouds upcoming economic reports. (Reuters)
The road ahead isn’t smooth. A sustained jump in oil prices might revive inflation fears and make traders question the summer rate-cut outlook. At the same time, fresh software downgrades could weigh on the Dow, especially through Microsoft. Meanwhile, headlines out of Iran and budget battles in Washington have the power to strike quickly, undermining tentative rallies.
Investors will be closely monitoring if earnings momentum extends beyond a small group of tech leaders and whether capital continues to shift toward energy and industrial sectors. Traders will scrutinize Apple’s guidance for clues on demand and margins as the market wrestles with what “expensive” really means now.
Wall Street is eyeing the U.S. Employment Situation report for January, set to drop on Feb. 6 at 8:30 a.m. ET. Shortly after, the January consumer price index will come out on Feb. 11. The Labor Department notes these dates could shift. (Bls)
