On January 28, 2026, US stock futures, particularly E-mini S&P 500 contracts, edged higher as investors awaited the Federal Reserve’s latest policy decision. The central bank is widely expected to keep interest rates steady in a range of 3.5% to 3.75%, but the focus remains on when the next rate cut might occur—a key factor influencing mortgage rates, credit costs, and stock valuations.
Labor Market and Housing Trends
Recent private payroll data indicates that hiring has slowed for the seventh consecutive month, with approximately 7,750 jobs added per week in early January. While this suggests a cooling labor market, there are no signs of a collapse. Housing indicators, such as the Case Shiller 20 City Index and FHFA data, show modest price gains, which are important for household wealth and sectors tied to real estate and construction.
Investor Focus: Fed Policy and Earnings
The main question for investors is whether the Fed will signal patience regarding future rate cuts, especially as inflation remains persistent. This decision will impact rate-sensitive sectors like banks, utilities, and technology stocks. The upcoming Federal Reserve announcement and Chair Jerome Powell’s press conference are expected to provide critical guidance for the market’s next direction.
Market Movers and Earnings Highlights
- Corning (GLW): Shares surged over 15% after announcing a major fiber supply agreement with Meta for AI data centers.
- Lumentum Holdings (LITE): Jumped more than 11% following a significant price target increase from Citi.
- Sysco (SYY): Gained nearly 11% after Bank of America raised its price target and highlighted the company’s outlook.
- Humana (HUM): Fell over 21% due to concerns about Medicare rate proposals and broker commentary.
- UnitedHealth Group (UNH): Dropped nearly 20% on negative sentiment from Medicare rate headlines and analyst comments.
- Elevance Health (ELV): Declined over 14% after reports of flat 2027 Medicare rates.
What’s Ahead
Investors are closely watching a packed slate of earnings reports from major tech companies—including Microsoft, Meta Platforms, and Tesla—scheduled for release after the market close. Financial, industrial, and healthcare sector earnings are also in focus, with companies like Visa, Mastercard, Caterpillar, and Regeneron set to report in the coming days.
With rate-sensitive sectors and dividend stocks drawing renewed attention, investors are using tools to screen for undervalued opportunities and set alerts for market-moving events.