New York, Jan 29, 2026, 13:32 EST — Regular session
By 1:31 p.m. EST, the Dow Jones Industrial Average had dropped 143.74 points, or 0.29%, settling at 48,871.86. The S&P 500 was down 0.73%, while the Nasdaq Composite slid 1.46%. So far today, the Dow has fluctuated between 48,597.22 and 49,292.81. 1
The drop is significant as it hits during a crucial phase for the market: mega-cap earnings are under the microscope to see if AI investments are translating into quick revenue gains, while hopes for policy progress seem fully baked in. Since the Dow is a price-weighted index of 30 big U.S. firms, big swings in just a handful of high-priced stocks can drag the entire index down.
Microsoft tumbled 12.2% after its cloud revenue fell short of expectations, dragging the Dow down following an earlier drop of more than 200 points. “People have just been throwing money,” said Max Wasserman, co-founder and senior portfolio manager at Miramar Capital. Tesla also slid after revealing plans to more than double its capital spending. Meta, however, gained ground on a strong forecast despite raising its own spending outlook. Weekly jobless claims edged lower to 209,000. 2
Oil prices pushed higher again. U.S. crude climbed 2.67% to $64.90 a barrel, while Brent rose 2.79% to $70.31. This follows a sharper jump the previous day amid concerns over a potential U.S. military strike on Iran. “Maybe a bit of de-risking going into the print,” said Adam Turnquist, chief technical strategist at LPL Financial, commenting on the mood around earnings. 3
Wednesday closed with the Dow nearly flat after the Federal Reserve kept rates steady at 3.50%–3.75%, providing scant clues on when it might ease borrowing costs. “Whether you were bullish or bearish going into the press conference you walked away feeling about the same,” remarked Michael James, an equity sales trader at Rosenblatt Securities. 4
Risk appetite remains largely driven by rate expectations. Interest-rate futures — the go-to tool for betting on Fed moves — signal a roughly 65% chance of a cut in June, even as debate swirls over what happens after Jerome Powell’s chairmanship ends in May. “Our two cents is that the economy is doing okay, but inflation is a bit sticky,” said Tim Holland, chief investment officer at Orion. 5
Apple faces its next big moment after the closing bell. Reuters says the tech giant is set to report its strongest iPhone sales growth in four years, driven by demand for its premium Pro models. Investors are eager for updates on AI features built using Google’s technology, as well as potential cost pressures from a global memory chip shortage. Gerrit Smit, manager of the Stonehage Fleming Global Best Ideas Equity fund, noted, “Apple can probably generate a positive return on very little AI investment, thanks to its distribution.” 6
At the moment, the Dow is faring better than the tech-heavy Nasdaq, but the story is consistent across the board: investors demand growth that comes with a clear plan, plus numbers they can actually model.
Still, risks remain. Should Apple miss its outlook, or if more companies ramp up spending without clear returns, the selloff could spill beyond software and chips. On top of that, a new surge in oil prices would create another headache — rising energy costs risk stoking inflation worries and delaying rate cuts even more.
Traders are zeroing in on Apple’s earnings and guidance due Thursday after the closing bell, looking for signs on how much longer the market will stomach costly AI investments.
