On January 28, 2026, market reactions to the Federal Reserve’s latest decisions were largely subdued, as investors keenly monitored the performance of artificial intelligence (AI) and technology earnings. The S&P 500 experienced a slight decline of 0.01%, settling at 6,978.03, while the Nasdaq Composite marked a modest increase of 0.17% to reach 23,857.45, nearing a record high. The Dow Jones Industrial Average also edged up, gaining 0.02% to 49,015.60 in the calm trading environment following the Fed’s announcements.
In terms of market influences, some industrial firms faced challenges, particularly Badger Meter, which saw its stock plummet by 11.00% to $146.32 after reporting disappointing revenue figures. The spotlight remained firmly on major companies, with earnings reports from tech giants such as Meta, Microsoft, and Tesla capturing significant attention. Tesla’s response to its earnings report post-market showed a revenue decline, despite surpassing estimates.
RBC Capital Markets expressed optimism regarding Intuit, maintaining an “Outperform” rating and suggesting that the company’s recent dip could present a favorable buying opportunity. Additionally, C3.ai enjoyed a boost of 4.21%, rising to $13.13 amid news of potential mergers.
From a broader perspective, the Federal Reserve decided to keep interest rates unchanged, holding the benchmark rate steady between 3.5% and 3.75%. Fed Chair Jerome Powell mentioned a positive economic outlook and a stabilizing unemployment rate during his remarks after the meeting. The CME FedWatch tool now indicates expectations for two rate cuts later in the year, with projections suggesting the first reduction could occur in June.
As the Nasdaq slightly climbed in advance of crucial AI and tech earnings, Meta’s shares rose notably in after-hours trading after outperforming analyst forecasts. Despite Microsoft’s strong results, its stock fluctuated downward, likely due to investor worries over substantial AI expenditures. With Apple set to announce its earnings tomorrow, investors are eager for insights into the evolving AI landscape, particularly given concerns about inflated valuations potentially leading to a market correction later in 2026.
The developments in AI and technology sectors signify strong investor interest and speculation about future trends, creating an environment where strategic investments may thrive despite the current market’s cautious sentiment.