Tuesday, January 27, 2026

Dollar Plunges on Trump Remarks, Shaking Up Narrative

In late evening trading, the market's focus has been abruptly wrenched from corporate earnings to the macro landscape, as a sharp plunge in the U.S. dollar introduces a major new variable for investors. The move, reportedly triggered by remarks from former President Trump, is causing significant volatility in currency markets and has the potential to reshape the trading landscape for U.S. multinationals heading into the next session.

This macro shock comes after a day that ended in a stalemate, with the S&P 500 closing flat as a rally in industrials was canceled out by a collapse in health insurers. The post-market narrative is now being complicated by signs of strategic tightening at mega-cap bellwethers. Amazon (AMZN) is in the spotlight following two key developments: the company announced it is shutting down a key grocery venture and separately revealed layoffs within its crucial AWS cloud unit. The moves signal a broader push for cost discipline and strategic focus, even among the market's biggest players.

Meanwhile, the bullish undercurrent of AI investment remains firmly in place. Reports indicate that AI developer Anthropic has sharply increased its revenue forecast for 2026, reinforcing the theme of explosive growth in the sector that continues to attract massive capital, irrespective of broader economic crosscurrents.

SoftBank Eyes Massive $30B OpenAI Investment

The artificial intelligence investment frenzy is showing no signs of slowing down in post-market hours. A major report from the Wall Street Journal indicates Japan's SoftBank (SFTBY) is exploring an additional investment of up to $30 billion in OpenAI. This news injects a fresh wave of powerful, risk-on sentiment into the tech sector after a day that saw the broader market close in a stalemate.

This potential capital injection provides a significant exclamation point to a narrative that was already bubbling under the surface. While the S&P 500 finished the day flat, locked in a battle between soaring industrials and collapsing health insurers, the AI infrastructure theme was a consistent bright spot, with strong results from data storage firm Seagate (STX) and a surge in fiber-optics maker Corning (GLW).

However, the after-hours session isn't without its own set of crosscurrents. Oracle (ORCL) is in the spotlight after acknowledging a data center outage was responsible for issues at its major client TikTok, a reminder of the operational risks in the cloud space. Separately, filings revealed an insider purchase at Intel (INTC), with the company's CFO buying nearly $250,000 worth of shares.

Tech Earnings Split as Wall Street Braces for Fed, Big Tech

After a session that ended in a stalemate, post-market earnings are painting a conflicting picture for the technology sector. The day's trading was a brutal tug-of-war, with a powerful rally in industrials like General Motors (GM) and UPS (UPS) on strong results being completely neutralized by a historic collapse in health insurers, led by UnitedHealth (UNH).

In after-hours trading, the AI and data center theme is showing renewed strength. Shares of data storage giant Seagate (STX) are rising after the company reported record results, citing robust demand from data center clients. This provides a bullish counterpoint to the broader economic concerns that have been brewing.

However, that optimism is being tempered by the earlier earnings miss from semiconductor bellwether Texas Instruments (TXN), which continues to weigh on sentiment. As a key supplier to industrial and automotive end-markets, TXN's weakness suggests slowing demand in the 'real economy' segments of tech, creating a clear divergence within the sector.

Investors are now turning their focus to a pivotal session ahead, which will bring a policy decision from the Federal Reserve and a slate of crucial earnings reports from Magnificent Seven members like Microsoft (MSFT) and Meta (META).

Texas Instruments Miss Casts Shadow on Tech Rally

After a session that ended in a stalemate, post-market earnings are injecting a dose of caution into the tech sector. The day's trading was defined by a brutal tug-of-war, with a powerful rally in industrials like GM and UPS completely offset by a historic plunge in health insurers, led by UnitedHealth (UNH).

The key after-hours development is a disappointing report from semiconductor bellwether Texas Instruments (TXN), which missed quarterly forecasts and is trading lower. As a major supplier to industrial and automotive markets, TXN's weakness raises concerns about demand in the broader economy, acting as a counterpoint to the relentless optimism surrounding AI-centric names like Nvidia (NVDA).

Meanwhile, the negative healthcare narrative that crippled the market during the day is deepening. New reports confirm that major drugmakers Eli Lilly (LLY), Pfizer (PFE), and AbbVie (ABBV) are being targeted for the next round of Medicare price negotiations. This expands the regulatory pressure beyond insurers and suggests the entire healthcare space will remain a significant headwind for the market.

Tech Earnings Offer Direction After Market Stalemate

After a session defined by a brutal tug-of-war that left the S&P 500 closing near the flatline, post-market earnings are providing a clearer, tech-forward signal. The day's narrative was one of extreme bifurcation: a powerful rally in industrials was completely neutralized by a historic collapse in the health insurance sector, led by a near-20% plunge in Dow component UnitedHealth (UNH).

In after-hours trading, semiconductor bellwether Texas Instruments (TXN) is providing a dose of optimism, with shares popping on its latest earnings report. Peripherals maker Logitech (LOGI) also edged higher on its results, suggesting pockets of strength in consumer and enterprise hardware spending.

Meanwhile, the negative healthcare narrative that dominated the session is being reinforced. Late reports indicate that major drugmakers Eli Lilly (LLY), Pfizer (PFE), and AbbVie (ABBV) are being targeted in the next round of Medicare price negotiations, broadening the scope of regulatory pressure facing the entire sector.

AI Narrative Roars Back in Post-Market Trading

While the regular session closed in a tense stalemate, with the S&P 500 nearly unchanged, the after-hours news flow is being dominated by a powerful resurgence of the artificial intelligence theme. The day's core conflict between surging industrials like GM and collapsing health insurers like UNH is giving way to a clear, tech-forward sentiment heading into the next session.

Two blockbuster reports are fueling the optimism. First, a story that Nvidia (NVDA) is set to surpass Apple (AAPL) as chip foundry TSMC's (TSM) largest customer in 2026. This is a seismic shift that crystallizes the AI revolution's impact on the global supply chain. Second, Micron (MU) officially unveiled a massive $24 billion plan for a new advanced manufacturing facility in Singapore, a direct response to the historic memory crunch driven by AI demand.

The capital frenzy extends beyond hardware. AI developer Anthropic reportedly closed a funding round valuing it above $10 billion, with giants Microsoft (MSFT) and Nvidia potentially increasing their stakes. Adding to the bullish tone, chipmaker Qorvo (QRVO) also posted a solid earnings and revenue beat in late trading.

Industrials Surge, Health Insurers Dive as S&P Ends Flat

U.S. markets closed the session in a tense stalemate, with major indices finishing near unchanged. The flat finish, however, masks a brutal underlying rotation, as a powerful rally in old-economy industrials was almost perfectly canceled out by a historic collapse in the health insurance sector.

The day's primary conflict was a story of earnings divergence. On one side, shares of General Motors (GM) and UPS (UPS) soared after reporting strong quarterly results and offering upbeat guidance, signaling resilience in the real economy. On the other, Dow component UnitedHealth (UNH) cratered, dragging the entire managed care sector down with it after a double-blow of weak forward guidance and a disappointing government proposal for Medicare Advantage payment rates.

Big Tech acted as a key stabilizing force, with positive news around Microsoft's (MSFT) new AI chip and a strong analyst upgrade for Alphabet (GOOGL) helping to buoy the Nasdaq. In after-hours news, the semiconductor M&A theme continued with quantum-computing firm IonQ (IONQ) announcing a deal to acquire chip maker SkyWater (SKYT).

Stocks Stuck in Neutral Ahead of Final Hour

U.S. equities are treading water in late afternoon trading, with the S&P 500 hovering stubbornly around the flatline. The lack of conviction in the headline index belies a turbulent session underneath, as the market remains unable to resolve the day's core conflict between pockets of industrial strength and a brutal sell-off in the healthcare sector.

Weighing on sentiment are fresh signs of economic caution. A report indicated that homebuyers are backing out of deals at the fastest pace in nearly a decade, reinforcing the weak consumer confidence data from this morning. Further, troubling headlines for bellwethers are adding to the cautious tone, with a new report highlighting a significant decline in Tesla's (TSLA) brand value for the third straight year.

The day's narrative remains a study in contrasts. While the AI infrastructure theme continues to produce winners, such as Corning (GLW) surging on its deal with Meta (META), and logistics giant UPS rallying on strong earnings, the gains are being almost perfectly offset by the ongoing implosion in health insurers like UnitedHealth (UNH).

S&P 500 Flat as Corporate Cuts Weigh on Sentiment

U.S. equities are churning without clear direction in afternoon trading, as the market struggles to digest a wave of conflicting earnings reports and major corporate strategy shifts. The S&P 500 is hovering near the flatline, locked in the same tug-of-war between industrial strength and healthcare weakness that has defined the session.

Sentiment is being dampened by significant cost-cutting announcements from economic bellwethers. While UPS shares are rallying on a strong earnings report, the company also announced plans to cut up to 30,000 jobs, a move investors are cheering for its margin benefits but which signals a cautious outlook on global demand. Meanwhile, Amazon (AMZN) is pulling back on its physical retail ambitions, announcing the closure of all its Amazon Fresh and Go stores to refocus on its delivery and Whole Foods operations.

The healthcare sector remains the market's biggest anchor, with UnitedHealth (UNH) extending its steep losses, now down nearly 20%. The plunge follows the one-two punch of a weak forward guidance and a disappointing government proposal on Medicare Advantage payment rates. Conversely, big tech is providing a mixed picture, with a price target lift for Alphabet (GOOGL) being offset by cuts for Microsoft (MSFT) and Meta (META), preventing the Nasdaq from taking decisive leadership.

Big Tech Flexes Muscles Amid Market Stalemate

The S&P 500 remains locked near the flatline in a tense midday session, but the calm index level masks a powerful rotation under the surface. While the rout in health insurers continues to act as a major anchor, a wave of positive news and analyst sentiment is lifting mega-cap technology stocks, preventing a broader market decline.

Leading the charge is Alphabet (GOOGL), which is rallying strongly after receiving a major upgrade from Raymond James to 'Strong Buy'. The bullish call underscores a renewed Wall Street focus on the company's AI and cloud growth engines. The AI infrastructure theme is further bolstered by news that Microsoft (MSFT) is expanding its data center capacity and debuting a new custom AI chip, while memory maker Micron (MU) continues to surge on optimism over demand.

The divergence is stark. Even as tech giants advance, other areas are showing stress. Pinterest (PINS) is trading lower after announcing it will lay off 15% of its staff to reallocate resources toward AI initiatives, a move indicative of the broader cost-cutting pressures in the ad-tech space.

Stocks Tread Water as Sector Battles Rage On

The S&P 500 is churning near the flatline at midday, but the lack of movement in the headline index masks a turbulent session beneath the surface. The market remains locked in a tug-of-war, with strength in AI-related technology and select industrials being nullified by deep pockets of weakness elsewhere.

The primary anchor remains the health insurance sector, where shares of UnitedHealth (UNH), Humana (HUM), and CVS Health (CVS) continue their steep descent. The sell-off, sparked by a disappointing government proposal for Medicare Advantage payment rates and weak guidance from UNH, has forced a major repricing of the entire managed care industry.

New pressure points are also emerging. Amazon (AMZN) is shaking up the grocery space by announcing it will close all of its physical Fresh and Go stores to focus on its core online delivery business. While AMZN shares are holding up, the strategic shift is sending a shockwave through the sector, weighing heavily on competitors like Kroger (KR) and Instacart (CART).

On the positive side of the ledger, the AI infrastructure theme continues to generate winners. Corning (GLW) is surging after announcing a significant deal to supply Meta Platforms (META) with fiber-optic solutions for its data centers. Similarly, Cloudflare (NET) is popping on optimism surrounding its partnership with AI model builder Anthropic.

Market Churns Near Flatline Amid Sector Collision

The broader market is struggling to find a clear direction mid-morning, with the S&P 500 hovering near unchanged. This apparent calm on the surface masks a fierce tug-of-war beneath, as a powerful rally in industrial and automotive stocks is being almost perfectly offset by a brutal sell-off in the health insurance sector.

The primary anchor on the market is a full-blown rout in health insurers. Dow component UnitedHealth (UNH) is plummeting alongside peers Humana (HUM) and CVS Health (CVS). The catalyst is a double blow: a government proposal to keep Medicare Advantage payment rates flat, coupled with weak forward guidance from UNH itself, which is forcing investors to reprice the entire sector's growth outlook. Adding to the cautious mood is a dismal Consumer Confidence report for January, which slumped to its lowest level since 2014, raising broader questions about the economic outlook.

Pushing back against the negativity are several old-economy bellwethers. General Motors (GM) is surging after a strong earnings beat and a dividend hike, while Boeing (BA) is also gaining altitude on better-than-expected free cash flow. Elsewhere, the AI infrastructure narrative remains a source of strength, with Corning (GLW) breaking out after announcing a major fiber-optic supply deal with Meta Platforms (META).

Markets Stall as Industrials Clash With Healthcare Plunge

U.S. equities are struggling for direction in early trading, with major indices hovering near the flatline. This apparent calm masks a fierce underlying battle between surging industrial stocks and a cratering healthcare sector following a barrage of earnings reports.

Providing a significant lift are old-economy bellwethers. Shares of General Motors (GM) are rallying after the automaker beat earnings expectations and boosted its dividend, with investors overlooking a massive charge related to its EV strategy shift. Likewise, Boeing (BA) is climbing after swinging to a quarterly profit on the back of stronger deliveries.

However, that strength is being completely offset by a rout in health insurers. Dow component UnitedHealth (UNH) is plummeting, acting as the primary anchor on the market. The sell-off follows a double-whammy of a disappointing government proposal for Medicare Advantage payment rates and the company's own weak forward guidance, dragging the entire managed care sector down with it.

Industrials Surge, Health Insurers Dive in Earnings Clash

The final hour of pre-market trading is dominated by a stark divergence in earnings, setting the stage for a turbulent open. Strong reports from industrial and automotive bellwethers are clashing with a significant sell-off in the healthcare insurance sector, creating a classic tug-of-war for market direction.

Leading the bulls are shares of General Motors (GM) and Boeing (BA), which are both soaring after reporting surprisingly strong quarterly results and beating revenue expectations. Logistics giant UPS is also trading sharply higher on an upbeat forecast, providing a dose of optimism for the real economy. The AI infrastructure theme remains robust, with Meta (META) and Corning (GLW) rising on news of a multi-billion dollar fiber-optic cable deal for data centers.

However, this optimism is being completely offset by a crisis in the healthcare space. Dow component UnitedHealth (UNH) is plunging more than 12% in pre-market action. The drop follows a double blow of disappointing proposed Medicare Advantage payment rates and the company's own weak forward guidance, dragging the entire managed care sector down with it.

With major industrials pointing to a strong open while a heavyweight like UNH provides a significant drag, investors are bracing for a choppy session where stock and sector selection will be paramount.

GM, UPS Rally as Health Insurers Slump

U.S. equity futures are indicating a mixed and turbulent open as investors navigate a barrage of conflicting earnings reports that are creating a clear divide between winning and losing sectors. A powerful rally in old-economy industrial and defense stocks is being offset by a significant sell-off in the healthcare insurance space.

Leading the charge higher are shares of General Motors (GM) and United Parcel Service (UPS). GM is trading sharply higher pre-market after beating analyst expectations, a sign of relief for the legacy auto sector. Meanwhile, UPS soared after posting strong results and an upbeat revenue forecast, providing a bullish signal for the broader economy. The defense sector is also a pocket of strength, with both Northrop Grumman (NOC) and RTX Corp (RTX) reporting solid demand.

However, that optimism is being completely erased by deep trouble in healthcare. Following up on earlier news of a disappointing Medicare Advantage payment proposal, bellwether UnitedHealth (UNH) is slumping on soft guidance. The weakness is sector-wide, with HCA Healthcare (HCA) also falling after a revenue miss.

Looming over the session is a busy week for Big Tech earnings and the upcoming Federal Reserve policy meeting. Traders are showing some caution on mega-caps, with Google (GOOGL) facing fresh regulatory scrutiny from the EU over its AI services, even as Amazon (AMZN) enjoys a boost from a major new cloud contract with the U.S. Air Force.

UPS Soars, UNH Sinks as Earnings Paint Split Picture

The pre-market narrative is being dictated by a sharp divergence in early earnings reports from two major economic bellwethers. Futures are indicating a mixed open as investors digest conflicting signals from the logistics and healthcare sectors.

On the positive side, shares of United Parcel Service (UPS) are surging after the company delivered a strong quarterly earnings and revenue beat. More importantly, management issued an upbeat revenue forecast for the coming year, citing a strategic shift to higher-value shipments. The report from UPS is being viewed as a bullish signal for corporate spending and the health of the global economy.

However, that optimism is being completely offset by significant weakness in the healthcare space. UnitedHealth (UNH) is trading sharply lower despite a modest EPS beat. The market is instead focused on the insurer's soft revenue guidance and a forecast for a year-over-year revenue decline in 2026. This news exacerbates the pressure from an earlier report on disappointing Medicare Advantage payment proposals, which is dragging down the entire managed care sector, including peers like Humana (HUM) and CVS Health (CVS).

Software Stocks Set to Rally on Contracts, AI Buzz

The pre-market session is shaping up to be a tale of two markets, with software and AI-related stocks indicating a strong open while other sectors face headwinds. The positive momentum is being fueled by significant company-specific news, suggesting a selective, stock-picker's environment at the opening bell.

Leading the charge is Salesforce (CRM), with shares pointing higher after the company announced a major $5.6 billion contract with the U.S. Army. The bullish sentiment in tech is amplified by Cloudflare (NET), which is surging in pre-market trading on rising optimism about its potential to capitalize on AI workloads. This builds on the overnight theme of a massive investment cycle in digital infrastructure.

This strength in software contrasts sharply with the pressure seen in healthcare, following the 5:00 AM news of disappointing Medicare Advantage payment rates that are weighing on insurers like UnitedHealth (UNH). With European markets trading positively but US mega-caps like Google (GOOGL) facing fresh regulatory scrutiny from the EU, traders are navigating a complex and divergent setup ahead of the open.

Health Insurers Under Pressure on Medicare News

A significant headwind is emerging from the healthcare sector this morning, threatening to weigh on the broader market open. Shares of major health insurers like UnitedHealth (UNH) and Humana (HUM) are indicating a sharply lower open after a preliminary payment proposal for Medicare Advantage rates came in well below analyst expectations.

This news is rippling across the entire managed care space and could be a notable drag on the Dow Jones Industrial Average, where UNH is a heavily-weighted component. The development provides a potent counter-narrative to the tech-centric optimism that has dominated recent sessions.

The downbeat mood is being compounded by fresh pressure on tech mega-caps. Apple (AAPL) is in focus after Aletheia Capital reiterated its 'Sell' rating and lowered its price target, citing concerns that the company's hardware margins may have peaked. This adds a layer of caution for the Nasdaq ahead of a busy earnings week for big tech.

Analyst Calls Create Pre-Market Battleground

As European markets trade firmly in the green, Wall Street is waking up to a flurry of analyst ratings that are creating clear winners and losers ahead of the opening bell. The action suggests a selective, stock-picker's environment may be emerging.

On the positive side, industrial supplier WW Grainger (GWW) and electronics manufacturer TE Connectivity (TEL) received 'Outperform' upgrades from Oppenheimer. The bullish tech narrative also got a fresh boost as TD Cowen reiterated its 'Buy' rating on Alphabet (GOOGL), citing an accelerating rollout for its Waymo autonomous vehicle unit.

However, the calls were not universally positive. Oppenheimer also downgraded industrial bellwethers Emerson (EMR) and Ametek (AME) to 'Perform'. In the energy sector, JPMorgan cut its rating on pipeline operator ONEOK (OKE), flagging concerns over future growth.

Chip Sector Capex Boom Dominates Overnight News

The narrative of a massive global build-out in artificial intelligence capacity is gaining significant traction overnight, with a flurry of news reinforcing the market's primary bullish theme. The most significant headline is a report that Micron (MU) has committed $24 billion to expand its memory chip production in Singapore, a clear signal of the capital investment frenzy aimed at meeting explosive AI-driven demand.

This directly supports the broader supply chain ecosystem. A separate report highlighted how essential equipment maker ASML is riding the coattails of giants like Nvidia (NVDA), as demand for its highly specialized chip-making machines soars. This underscores the depth and breadth of the current investment cycle, extending far beyond just the chip designers themselves.

The positive sentiment isn't confined to semiconductors. Chinese tech giant Tencent (TCEHY) announced plans to expand its cloud operations in the Middle East, preparing to compete more directly with U.S. incumbents Amazon (AMZN) and Microsoft (MSFT) and indicating a healthy global appetite for tech expansion.

Global Trade Optimism Clashes With Inflation Surprise

The overnight session is presenting a classic tug-of-war for investors, with positive developments on global trade being offset by a concerning inflation signal out of the U.K. A landmark free trade agreement has been finalized between India and the European Union, a significant deal poised to lower tariffs and boost trade for multinational corporations, building on the auto-sector specific news from earlier.

However, that risk-on catalyst is being met with a dose of reality. Shop price inflation in Britain unexpectedly jumped to 1.5% in January, a sign that price pressures remain stubbornly high. This data point serves as a crucial reminder for markets that the global fight against inflation is far from over and could keep central banks in a hawkish stance.

On the corporate front, a major M&A story is developing. Reports indicate that Netflix's (NFLX) potential $83 billion bid for Warner Bros. Discovery (WBD) will face scrutiny from U.K. regulators, introducing a significant potential roadblock for one of the largest media deals in recent memory.

Auto Sector Tug-of-War Sets Early Tone

Overnight news is painting a deeply divided picture within the automotive and electric vehicle space, setting up a key conflict for traders to watch. The primary focus is on legacy automaker General Motors (GM), which is set to report earnings before the bell. Reports are highlighting that the company plans to record a massive $7.1 billion in special charges related to its pullback in EV production and a restructuring in China, confirming the narrative of significant stress among traditional manufacturers.

This grim outlook from Detroit contrasts sharply with more positive developments elsewhere. In Europe, data showed that fully electric vehicle sales overtook petrol for the first time in December, suggesting robust consumer demand. Furthermore, reports indicate India has agreed to slash tariffs on EU car imports, a potential boon for exporters like Tesla (TSLA) and Stellantis (STLA) looking to crack the massive Indian market.

Beyond the auto sector, early earnings news provided some bright spots. Regional bank Western Alliance (WAL) posted a solid earnings and revenue beat. However, sentiment was tempered by news of significant insider selling at chipmaker Microchip (MCHP) and lingering concerns over slowing Chinese growth impacting luxury giants like LVMH (LVMUY).

AI Supply Chain News Fuels Early Optimism

Overnight headlines are reinforcing the market's primary obsession: the relentless build-out of artificial intelligence infrastructure. The positive news flow is setting a firm, risk-on tone ahead of the official pre-market session.

Leading the charge is a report that Samsung (SSNLF) is preparing to begin production of its next-generation HBM4 memory chips, a critical component for AI accelerators, with the intention to supply powerhouse Nvidia (NVDA). This development is crucial as it signals efforts to ease the supply chain bottlenecks that have constrained the sector's explosive growth. Separately, Micron (MU) is reportedly planning a massive $24 billion chipmaking plant in Singapore, further underscoring the global capital rush into semiconductor manufacturing.

This news directly extends the narrative from the previous session, which highlighted the growing divergence between the booming AI economy and struggling legacy industries. A positive backdrop is also being provided by reports of an "unbelievable" rush of capital into Asian equity markets, suggesting a broad appetite for risk assets globally.