On January 28, 2026, US stock markets reached fresh record highs, driven largely by gains in the technology sector. As investors awaited earnings reports from major tech companies, the Federal Reserve’s latest policy decision and news of significant layoffs at Amazon also captured market attention. Here are the three key developments shaping the financial landscape today:
1. Tech Sector Drives Market Rally
US stocks have recently rallied to new highs, with technology companies leading the charge. Investors are closely watching the so-called “Magnificent Seven” stocks, including Tesla, Meta Platforms, and Microsoft, all set to report earnings after the closing bell. The market is particularly interested in whether the substantial investments in artificial intelligence (AI) by these firms are beginning to yield tangible returns.
Strong performance in the tech sector has been a primary factor in recent market gains, but with earnings season underway, the sustainability of this rally will depend on the results and outlooks provided by these industry leaders.
2. Federal Reserve Holds Interest Rates Steady
The Federal Reserve is expected to maintain its benchmark interest rate at its January meeting, keeping rates on pause amid ongoing economic uncertainty. The central bank’s decision comes as inflation remains a concern, but the labor market shows signs of stabilization. Investors and analysts will be paying close attention to comments from Fed Chair Jerome Powell for any signals about the future path of monetary policy.
The Fed’s approach is seen as cautious, aiming to balance the risks of inflation against the need to support economic growth. The outcome of this meeting is likely to influence market sentiment in the coming weeks, especially in rate-sensitive sectors.
3. Amazon Announces Major Layoffs
Amazon revealed plans to lay off 16,000 corporate employees as part of an effort to streamline operations and reduce bureaucracy. This move follows a previous round of job cuts, bringing the total number of announced layoffs to 30,000 over the past three months. CEO Andy Jassy has emphasized the company’s focus on efficiency after a period of rapid hiring during the pandemic.
Amazon also noted that advances in AI and automation are expected to further reduce workforce needs in some areas. The company’s restructuring efforts are being closely watched as a bellwether for broader trends in the tech industry and corporate America.
As these three developments unfold, investors are advised to monitor market reactions and company statements for further insights into the direction of the US economy and stock market.