US stocks rose on Tuesday. Tech shares lifted the S&P 500 toward record levels ahead of key earnings and a Federal Reserve decision. At 11:21 a.m. New York time, the Standard & Poor’s 500 Index (S&P 500) rose 0.5%, reaching a new all-time intraday high, and the NASDAQ 100 gained 1%. The Dow Jones Industrial Average fell 0.7% as health insurers sank.
Markets also tracked a weaker dollar and firm commodities. The Bloomberg Dollar Spot Index fell 0.7%, and spot gold rose 1.8% to $5,097.42 an ounce. Traders now focus on Wednesday’s Federal Open Market Committee (FOMC) policy decision.
Investors pushed equities higher on expectations that solid earnings will extend gains into early 2026. Meanwhile, the Bloomberg Magnificent 7 Total Return Index rose 1.1% as megacap reports neared. European stocks also advanced, with the Stoxx Europe 600 up 0.6%.
Company updates helped explain the split across sectors. United Parcel Service Inc. offered an upbeat outlook and forecast full-year sales above Wall Street expectations. Corning Inc. climbed after, reportedly, Meta Platforms Inc. agreed to pay up to $6 billion for fiber-optic cables for artificial-intelligence data centers.
Economic data added a caution note without derailing the rally. The Conference Board said consumer confidence fell to 84.5 in January from a revised 94.2. The reading marked the lowest level since May 2014.
Attention now turns to the Fed's decision on Wednesday. Markets expected officials to hold rates steady after prior cuts, according to analysts. Meanwhile, President Donald Trump has pushed for lower rates ahead of the decision.
Health insurers slid after the US proposed holding payments to private Medicare plans flat next year. Investors had been expecting a roughly 6% increase in Medicare Advantage rates. Consequently, the sell-off erased more than $90 billion in market value across the group, Bloomberg reported.
UnitedHealth Group Inc. and Humana Inc. dropped nearly 20% at one point. CVS Health Corp. and Elevance Health Inc. fell more than 10%. The S&P Composite 1500 Managed Care Index sank as much as 17% to its lowest level since August.
UnitedHealth also issued guidance that shook confidence. The company forecast a decline in 2026 revenue, its first annual contraction in more than three decades. Kevin Gade of Bahl & Gaynor said the proposal looked “not as friendly” to Medicare Advantage as investors expected.
The dollar weakened toward its lowest level since February 2022 as the Japanese yen strengthened. Still, currency moves stayed broad-based. The euro rose 0.8% to $1.1975. Meanwhile, the pound gained 0.6% to $1.3767, and the yen rose 0.8% to 152.99 per dollar.
Treasuries moved modestly ahead of the Fed decision. The 10-year Treasury yield rose one basis point to 4.22%, while the two-year yield slipped one basis point to 3.58%. Meanwhile, the 30-year yield rose three basis points to 4.83%.
Commodities and crypto traded higher. West Texas Intermediate (WTI) crude rose 1.8% to $61.75 a barrel, while Bitcoin rose 0.4% to $88,344.99. Ether gained 1.4% to $2,968.67. Meanwhile, traders also digested tariff signals after Trump said he planned a 25% tariff on South Korean goods.
Meta, Microsoft, and Tesla are due to report earnings after the close on Wednesday, with Apple reporting on Thursday. Many large companies report this week. Traders will watch whether results keep the S&P 500 record high theme intact.
UnitedHealth Group Inc. (UNH): Forecast 2026 revenue decline, first annual contraction in over three decades.
Medicare Advantage insurers: Sold off after the US proposed flat payments next year.
Meta Platforms Inc. (via CNBC report): Deal worth up to $6B with Corning for AI data-center fiber.
Corning Inc. (GLW): Jumped on the reported $6B Meta fiber-cable agreement.
Microsoft Corp. (MSFT): Earnings are due Wednesday, a key “Magnificent Seven” catalyst.
Meta Platforms Inc. (META): Earnings are due Wednesday, central to megacap sentiment.
Tesla Inc. (TSLA): Earnings are due Wednesday and are closely watched for guidance.
Apple Inc. (AAPL): Earnings are due Thursday, a major driver for index direction.
United Parcel Service Inc. (UPS): Forecast full-year sales above expectations.
UPS (jobs): Said it could cut up to 30,000 roles this year.
General Motors Co. (GM): Expects profits to rise by up to $2B; plans higher dividends and buybacks.
Micron Technology Inc. (MU): Announced $24B additional Singapore investment over the next decade.
Cloudflare Inc. (NET): Shares surged as analysts pointed to higher AI workloads and Clawdbot adoption.
Traders now head into Wednesday’s Fed decision and megacap earnings focused on whether strong results can keep the S&P 500 near record territory despite policy and healthcare shocks.
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