March S&P 500 E-Mini futures (ESH26) are up +0.26%, and March Nasdaq 100 E-Mini futures (NQH26) are up +0.60% this morning, buoyed by gains in technology stocks, while investors await the start of the Federal Reserve’s two-day policy meeting, as well as a new round of U.S. economic data and corporate earnings reports.
Futures on the Nasdaq 100 outperformed as chip stocks advanced in pre-market trading, led by a more than +5% gain in Micron Technology (MU) after the company said it will invest an additional $24 billion in Singapore over the next decade to expand manufacturing capacity amid an AI-driven memory chip shortage.
In yesterday’s trading session, Wall Street’s main stock indexes ended in the green. Most members of the Magnificent Seven stocks advanced, with Apple (AAPL) rising nearly +3% and Meta Platforms (META) gaining more than +2%. Also, Arista Networks (ANET) climbed over +5% and was the top percentage gainer on the S&P 500 after Wells Fargo analyst Aaron Rakers said he sees Microsoft’s launch of its second-generation Maia 200 AI chips as a “derivative positive” for the company. In addition, Baker Hughes (BKR) rose over +4% after the company posted better-than-expected Q4 results and said it plans to double its data center equipment order target to $3 billion over three years. On the bearish side, Revolution Medicines (RVMD) plunged over -16% after The Wall Street Journal reported that Merck is no longer in talks to acquire the company.
Economic data released on Monday showed that U.S. durable goods orders climbed +5.3% m/m in November, stronger than expectations of +3.1% m/m, and core durable goods orders, which exclude transportation, rose +0.5% m/m, stronger than expectations of +0.3% m/m.
On the trade front, President Trump on Monday threatened to raise tariffs on goods imported from South Korea to 25% from 15%, citing what he described as the failure of the country’s legislature to formalize the trade deal agreed last year.
The Federal Reserve kicks off its two-day meeting later in the day. The central bank is widely expected to keep the Fed funds rate unchanged in a range of 3.50% to 3.75% following three consecutive cuts at the end of 2025. Investors will closely watch Chair Jerome Powell’s post-policy meeting press conference for any signals on when rates could be cut again. “We expect Fed Chair Jerome Powell to emphasize that future rate moves will depend on how the economic data evolve,” HSBC economists said in a note. U.S. rate futures currently fully price in a 25-basis-point rate cut in July, with a meaningful chance of another reduction by year-end.
Fourth-quarter corporate earnings season is in full swing, with investors looking ahead to fresh reports from prominent companies today, including UnitedHealth Group (UNH), RTX Corporation (RTX), Boeing (BA), NextEra Energy (NEE), Texas Instruments (TXN), Union Pacific (UNP), HCA Healthcare (HCA), Northrop Grumman (NOC), United Parcel Service (UPS), and Seagate Technology Holdings (STX). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year.
On the economic data front, investors will focus on the U.S. Conference Board’s Consumer Confidence Index, which is set to be released in a couple of hours. Economists, on average, forecast that the January CB Consumer Confidence index will stand at 90.6, compared to last month’s figure of 89.1.
The U.S. S&P/CS HPI Composite - 20 n.s.a. will also be reported today. Economists expect the November figure to ease to +1.2% y/y from +1.3% y/y in October.
The U.S. Richmond Fed Manufacturing Index will be released today as well. Economists foresee this figure coming in at -5 in January, compared to the previous value of -7.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.223%, up +0.21%.
The Euro Stoxx 50 Index is up +0.24% this morning, buoyed by some positive corporate updates and a long-anticipated trade deal between the European Union and India. Bank stocks led the gains on Tuesday, reaching their highest level since May 2008. “The fundamentals for banks have really improved. We expect loan growth to pick up, and we could see further positive earnings surprises from the sector this year,” according to Ciaran Callaghan, a head of European equity research at Amundi. Semiconductor stocks also advanced, tracking gains in their Asian peers. Limiting gains, mining and energy stocks retreated. Meanwhile, the EU and India concluded a free-trade agreement after nearly two decades of negotiations, lifting sentiment around global trade. The deal is expected to double EU goods exports to India by 2032 after New Delhi agreed to eliminate or reduce tariffs on 96.6% of shipments. The EU, in turn, will scrap or lower tariffs on 99.5% of goods imported from India over a seven-year period. In corporate news, Puma Se (PUM.D.DX) surged over +7% after Chinese sportswear company Anta agreed to buy a stake in the firm for $1.79 billion. The deal is expected to support Puma’s efforts to boost sales in the lucrative Chinese market. Also, Siegfried Holding AG (SFZN.Z.IX) jumped more than +10% after the life sciences company announced a series of acquisitions. At the same time, Getinge Ab (GETIB.S.DX) slid over -6% after the Swedish medical equipment maker posted weaker-than-expected Q4 core earnings.
France’s Consumer Confidence data was released today.
The French January Consumer Confidence stood at 90, in line with expectations.
Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.85%.
China’s Shanghai Composite Index closed higher today, buoyed by data indicating improved profitability across the nation’s economy. Technology stocks led the gains on Tuesday. Insurance stocks also climbed after Hua Chuang Securities projected the sector would deliver strong earnings, supported by investment returns. In addition, non-ferrous metal stocks jumped. BNP Paribas analysts said in a note that China’s industrials, materials, and technology sectors are likely to sustain their recent outperformance in the first half of the year, given a favorable policy framework. Meanwhile, data released by the National Bureau of Statistics on Tuesday showed that China’s industrial profits rose 0.6% on year in 2025, reversing a decline in the previous year, supported by growth in the equipment and high-tech manufacturing sectors. Industrial profits grew 5.3% on year in December, reversing a 13.1% decline in November. Goldman Sachs said in a note that December’s profitability was “mostly driven by improving downstream profit margin.” Investor focus now shifts to China’s PMI data for January, scheduled for release over the weekend. In corporate news, Zijin Gold International surged over +11% in Hong Kong after the miner said it would acquire Canada’s Allied Gold to support its global expansion.
Japan’s Nikkei 225 Stock Index closed higher today as sentiment steadied following speculation about possible yen intervention. The yen weakened slightly in Tokyo trading on Tuesday after two days of sharp gains against the dollar amid speculation that the U.S. may coordinate currency intervention with Japan. Shuutarou Yasuda, market analyst at Tokai Tokyo Intelligence Laboratory, said, “The yen weakened toward the end of the session, and that supported the market.” Chip stocks led the gains on Tuesday. Yasuda said the gains in those shares were supported by a rally to a new record high in South Korea’s Kospi index, a bellwether for AI stocks. Meanwhile, data released on Tuesday showed that a key indicator of Japan’s services-sector inflation rose 2.6% in December from a year earlier, reinforcing the Bank of Japan’s view that labor shortages will continue to prompt companies to pass on higher costs. The data adds to mounting signs that steady wage growth, combined with higher import costs from a still-weak yen, will keep inflation elevated and justify further rate hikes by the BOJ. In an analysis released on Tuesday, the central bank said a weak yen is having a growing impact on Japan’s inflation, not only via higher import costs but also through second-round effects such as the pass-through of labor costs. In other news, Japanese political parties started an election campaign on Tuesday after Prime Minister Sanae Takaichi called a national election for February 8th. Investor attention this week is on a raft of Japan’s economic data, including Tokyo core CPI, industrial production, retail sales, and employment figures. Also, the BOJ will release the minutes of its December meeting on Wednesday. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.24% to 34.14.
The Japanese December Corporate Services Price Index rose +2.6% y/y, weaker than expectations of +2.7% y/y.
Pre-Market U.S. Stock Movers
Chip stocks advanced in pre-market trading, led by a more than +5% gain in Micron Technology (MU) after the company said it will invest an additional $24 billion in Singapore over the next decade to expand manufacturing capacity amid an AI-driven memory chip shortage. Advanced Micro Devices (AMD), Marvell Technology (MRVL), and Intel (INTC) are up over +1%.
Health insurance stocks plunged in pre-market trading after the U.S. proposed keeping payments to private Medicare plans flat next year. Humana (HUM) is down over -14%, UnitedHealth Group (UNH) is down more than -12%, and CVS Health (CVS) is down over -11%.
CoreWeave (CRWV) rose more than +4% in pre-market trading after Deutsche Bank upgraded the stock to Buy from Hold with a $140 price target.
United Parcel Service (UPS) gained over +3% in pre-market trading after the logistics provider posted better-than-expected Q4 results and issued above-consensus FY26 revenue guidance.
Nucor (NUE) fell more than -2% in pre-market trading after the steel company reported weaker-than-expected Q4 results.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - January 27th
UnitedHealth Group (UNH), RTX Corporation (RTX), Boeing (BA), NextEra Energy (NEE), Texas Instruments (TXN), Union Pacific (UNP), HCA Healthcare (HCA), Northrop Grumman (NOC), United Parcel Service (UPS), Seagate (STX), PACCAR (PCAR), Roper Technologies (ROP), Sysco (SYY), Kimberly-Clark (KMB), Synchrony Financial (SYF), PPG Industries (PPG), Packaging America (PKG), Nextpower (NXT), F5 Networks (FFIV), Logitech (LOGI), Invesco (IVZ), BXP Inc (BXP), Manhattan Associates (MANH), Applied Industrial Technologies (AIT), American Airlines (AAL), UMB Financial (UMBF), Popular (BPOP), Qorvo Inc (QRVO), CommVault (CVLT), Enova International Inc (ENVA), Polaris Industries (PII), Renasant (RNST), Greif Bros (GEF), WesBanco (WSBC), First Bancorp (FBP), Community Bank System (CBU), Stride (LRN), Provident (PFS), Trustmark (TRMK), JetBlue (JBLU), First Commonwealth Financial (FCF), National Bank Holdings (NBHC), Hope Bancorp (HOPE), QCR (QCRH), Hanmi (HAFC), Camden (CAC), Capital City Bank (CCBG), Orrstown (ORRF), World Acceptance (WRLD), Shore Bancshares (SHBI), Flushing (FFIC), Bridgewater Bancshares (BWB), Provident (PROV).
