Markets steady ahead of Fed decision as Big Tech earnings loom and Amazon plans deeper cuts

What’s driving the day

U.S. markets opened January 28, 2026 with traders trying to balance two forces that often pull prices in opposite directions: a high-stakes policy update from the Federal Reserve and a heavy slate of Big Tech earnings. Stock futures were slightly higher, building on momentum after the S&P 500 closed at a fresh record the day before, while the Nasdaq’s premarket strength reflected continued enthusiasm for megacap technology names.

At the center of attention is the Fed’s scheduled announcement at 2:00 p.m. ET following the Federal Open Market Committee’s two-day meeting. Markets broadly expected officials to keep rates unchanged, but investors still prepared for volatility because the message around inflation, the labor market, and the outlook for additional moves can matter as much as the decision itself.

Powell’s guidance, not just the rate call

Fed Chair Jerome Powell’s 2:30 p.m. press conference is expected to be parsed line by line. Traders will listen for how the central bank describes progress on inflation, whether job-market cooling appears orderly, and what policymakers think about financial conditions after a strong run in equities. Any hint that the Fed is more worried about inflation re-accelerating—or more concerned about growth slowing—could quickly shift expectations.

Beyond standard economic questions, investors also continue to watch how political pressures might affect perceptions of central-bank independence. Even if policy stays steady, the tone of the Fed’s communication can influence bond yields, the dollar, and risk appetite across stocks.

Big Tech earnings: AI spending under the microscope

After the closing bell, Meta Platforms, Microsoft and Tesla are all scheduled to report quarterly results. Investors are looking not only for revenue and profit figures, but also for updates on capital spending tied to artificial intelligence and data-center buildouts. The question hovering over the sector is whether today’s enormous AI investments will translate into durable earnings growth—or pressure margins before payoffs arrive.

Microsoft’s cloud business and AI-driven demand for Azure remain key swing factors for sentiment, while Meta’s ad business and spending plans could influence broader views on the sustainability of heavy AI investment across the industry. Tesla’s report is expected to draw focus on commentary about product timelines and autonomy initiatives.

Amazon layoffs add to the corporate reset narrative

Adding to the day’s headlines, Amazon informed employees that it expects to cut about 16,000 jobs—described as its largest layoff round—after prior workforce reductions earlier in the cycle. The move reinforces a theme that has repeatedly appeared across large employers: simplifying org charts, reducing layers, and attempting to fund large strategic priorities—like AI infrastructure—while protecting profitability.

For investors, the layoffs are likely to be viewed through two lenses at once. On one hand, they can signal cost discipline. On the other, they can suggest that even the biggest companies are feeling pressure to rebalance spending and restructure for the next phase of growth.

Commodities and crypto stay in focus

Outside equities, gold continued to surge to new highs, and bitcoin traded near the $90,000 level. Moves in these markets often reflect a mix of factors—real rates, risk sentiment, and positioning—but they also serve as a real-time indicator of how investors are digesting macro uncertainty ahead of major central-bank events.