New York, Jan 28, 2026, 13:39 EST — Regular session
The Dow Jones Industrial Average stayed close to unchanged on Wednesday as the S&P 500 briefly climbed above 7,000 before slipping back. Investors were on edge ahead of the Federal Reserve’s rate announcement and a slew of megacap earnings reports. By 11:31 a.m. ET, the Dow had edged up 49.62 points, or 0.10%, to 49,053.03. Chip stocks drove early gains, with Intel soaring 11.3%.
Sentiment remains mostly positive, though conditions are shifting. The AI-driven rally now hinges on earnings living up to hefty investments and monetary policy staying aligned with investors’ hopes. The term “Magnificent Seven” points to the handful of megacap tech stocks that have carried the indexes. Reuters
The Fed is set to hold rates steady, reinforcing just how sensitive stocks are to borrowing cost moves. A basis point—one-hundredth of a percentage point—might seem tiny, but even small shifts in expected rate cuts can jolt valuations. Reuters noted unemployment hovering around 4.4%, while inflation remains above the central bank’s 2% target.
Tuesday’s session revealed a clear divide. The Dow dropped 0.8% to 49,003.41, while the S&P 500 climbed 0.4% to 6,978.60. The Nasdaq edged up 0.9%, buoyed by Apple and Microsoft gains. Meanwhile, a report flagged a sharp decline in U.S. consumer confidence.
Health insurers weighed heavily on the Dow this week after the Trump administration unveiled a much smaller increase than expected for 2027 Medicare Advantage rates — the private sector’s Medicare alternative. UnitedHealth plunged nearly 20% on Tuesday, dragging the group down by roughly $80 billion in market value, Reuters reported. CVS fell about 11%, while Humana dropped close to 19%.
The Centers for Medicare & Medicaid Services unveiled a proposed average increase of just 0.09%, projecting it would add over $700 million in payments by 2027. CMS Administrator Mehmet Oz stressed the goal to “make sure Medicare Advantage works better.” Meanwhile, Kevin Gade, COO at Bahl & Gaynor, noted investors had been expecting a bump “closer to 4 to 5%.” The agency is set to announce the final rates on April 6. Reuters
Elevance Health, a major player in the sector, now expects revenue to dip slightly in 2026 and projects profits below Wall Street’s estimates. CEO Gail Boudreaux pointed out that proposed payment rates won’t keep up with rising operating costs. Morningstar analyst Julie Utterbeck described the stock’s initial rebound as a relief rally following the selloff triggered by the Medicare notice.
Outside of healthcare, markets edged near record highs with uneven action. The S&P 500 held firm while the Dow and Nasdaq each gained roughly 0.1% in late-morning trading. Seagate surged 19.3% following its earnings release, but Apple dipped slightly ahead of its report. The 10-year Treasury yield hovered around 4.26%, according to AP.
The dollar found its footing after Tuesday’s steep decline, while gold surged past $5,300 an ounce, hitting a new record. These shifts kept traders on edge over Fed policy and political chatter. Reuters reported the dollar index climbed 0.32% as investors held their breath ahead of the rate decision, zeroing in on Chair Jerome Powell.
This could still unravel quickly. If the Fed signals less eagerness to cut rates later this year, or if megacaps miss on guidance, the narrow leadership behind the index gains could reverse sharply — particularly with the S&P sitting near a key round-number level.
On Wednesday, the Fed will release its policy statement, with earnings reports from Meta Platforms, Microsoft, and Tesla coming after the bell. Apple’s earnings are scheduled for Thursday, Jan. 29. These results are expected to influence the Dow and broader market sentiment as the week wraps up.
