Market Recap - Wednesday January 28, 2026
Markets Pause as the Fed Holds Steady and AI Stocks Lead the Action
U.S. stocks finished the day narrowly mixed as investors digested the Federal Reserve’s interest rate decision and waited for major tech earnings after the market closed. The Dow edged up 0.02%, the S&P 500 slipped just 0.01%, the Nasdaq gained 0.17%, and small caps lagged again with the Russell 2000 down 0.49%. Earlier in the day, the S&P 500 briefly crossed the 7,000 mark for the first time before pulling back. Semiconductor stocks stood out as the strongest group, with companies like Texas Instruments and Intel rallying on upbeat outlooks and AI-related optimism. Other areas showing strength included airlines, restaurants, telecom, media, credit cards, casinos, energy, metals, and solar stocks. Weakness showed up in healthcare names like biotech and hospitals, industrials, retail and apparel, REITs, and chemicals. Big tech was mixed as investors positioned cautiously ahead of earnings from Microsoft, Meta, and Tesla.
In the bond and currency markets, Treasury yields moved slightly higher, and the yield curve steepened modestly. The U.S. dollar firmed after sliding to nearly a four-year low the day before, though it remained well below recent highs. Despite the stronger dollar, precious metals surged again, with gold jumping more than 4% and silver rising over 7%, continuing their strong run as investors looked for protection from inflation and policy uncertainty. Oil prices climbed about 1.3%, while Bitcoin futures were little changed.
The Federal Reserve was the main macro event of the day. The Fed held interest rates steady at 3.50% – 3.75%, as expected. Two policymakers voted in favor of a small rate cut, but Chair Jerome Powell emphasized that the economy remains “solid” and that the Fed is in no rush to lower rates further. Markets interpreted the message as a long pause rather than an immediate shift toward easing. Investors now expect any meaningful rate cuts to come later in the year, possibly starting around June. Economic data continues to send mixed signals, with growth holding up but inflation still elevated and labor conditions stabilizing.
Corporate news was busy and drove sharp stock moves. Semiconductor and AI-related companies surged on strong earnings and guidance, including Seagate and Texas Instruments. Intel jumped on rumors of a future collaboration with Nvidia, while Nvidia itself rose after reports that China approved new shipments of its advanced AI chips. Consumer and telecom stocks like Starbucks and AT&T also gained on better-than-expected results. On the downside, Carvana dropped sharply after a negative short-seller report questioned its financials. Some industrial and healthcare stocks fell despite beating earnings expectations, reflecting how high investor expectations have become. Outside earnings, Amazon announced job cuts, and China’s approval of Nvidia chips added to optimism around global AI demand.
Here’s Our Take
Today felt like a pause-and-breathe day for markets. The Fed didn’t surprise anyone, and investors stayed cautious ahead of critical Big Tech earnings that could set the tone for the next leg of the market. The continued strength in semiconductors and AI-related stocks shows that confidence in long-term technology growth remains strong, even as other sectors struggle. At the same time, the surge in gold and silver suggests investors are still hedging against uncertainty around inflation, geopolitics, and monetary policy. With earnings from Microsoft, Meta, Tesla, and Apple in focus, the market’s next move will likely depend on whether AI spending is translating into real profits — or just higher expectations.
P.S. Know someone who’d appreciate smarter stock insights and clearer investing strategies? Forward this email or share this link: subscribe.triplegains.com
Triple Gains - Stock Analysis - Thematic Insights - Portfolio Strategy
DISCLAIMER: The content provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other form of personal recommendation. Nothing in this newsletter should be interpreted as a suggestion to buy, sell, or hold any investment or security. All content is for general informational purposes only and should not be relied upon for making investment decisions. Readers should conduct their own research and consult qualified financial advisors before making any investment decisions. To read our full disclaimer, click here.