Stock Market News Jan. 26, 2026: Indexes Rise Ahead of Tech Earnings as Gold Breaks $5,000

Major U.S. stock indexes closed higher Monday, kicking off a pivotal week of tech earnings and the Federal Reserve’s interest rate decision. The Dow Jones Industrial Average gained more than 300 points, while the S&P 500 and Nasdaq also advanced, rebounding after two straight weeks of losses.

Markets weighed President Donald Trump’s threat of a 100% tariff on Canadian imports if Prime Minister Mark Carney strikes a trade deal with China, alongside shutdown risks after Senate Democrats vowed to block DHS funding following a deadly protest incident in Minneapolis.

Gold futures surged past $5,000 an ounce for the first time, hitting $5,115 before settling near $5,040, while silver soared to new records above $117. The rally underscored investor demand for safe-haven assets amid geopolitical tensions.

Currency and bond markets also shifted: the U.S. dollar index fell 0.6% to 97.03, sliding further against the yen as officials signaled intervention. The 10-year Treasury yield dipped below 4.22%, Bitcoin traded near $87,600, and crude oil slipped to $60.80 a barrel.

Corporate earnings drove volatility. Intel dropped 5.7% after a weak outlook, Tesla fell 3% ahead of Wednesday’s report, while Apple rose 3% on strong iPhone demand. Nvidia invested $2 billion in CoreWeave, boosting its shares, though Nvidia itself slipped 0.6%.

Airline stocks struggled as storms forced more than 20,000 flight cancellations, with JetBlue down nearly 4%. Meanwhile, USA Rare Earth surged almost 8% after securing $1.6 billion in federal funding and $1.5 billion in private investment.

Tesla is set to release its quarterly results after Wednesday’s market close, with traders pricing in a sharp move. Options suggest the stock could swing about 5% in either direction by week’s end, from Monday’s close near $435 potentially climbing to $459 or sliding to $412.

Investors will be tuned in to CEO Elon Musk’s commentary on Tesla’s push into self-driving and robotics. Musk recently said Optimus humanoid robots could be available to the public by next year, reinforcing his view that robotics and Full Self-Driving (FSD) subscriptions could become Tesla’s primary revenue drivers as EV sales face pressure. Tesla has already shifted FSD to a subscription-only model, aiming to boost recurring revenue.

The company also confirmed it has removed human safety monitors from some robotaxis in Austin, a milestone analysts at Morgan Stanley see as critical for its autonomous strategy. For Q4, Tesla is expected to post $25.1 billion in revenue, down 2.4% year-over-year, with adjusted EPS forecast at $0.46 versus $0.60 last year.

Wall Street remains split: six analysts rate Tesla a “buy,” three a “hold,” and two a “sell.” Their average price target of $446 implies only modest upside from current levels, underscoring the high stakes of this earnings call.

As the federal government explores ways to make housing more affordable, a proposal surfaced this month to let homebuyers tap into their retirement savings for down payments. The idea sparked debate over whether easing access to 401(k) funds could help families buy homes or undermine long-term retirement security.

Kevin Hassett, director of the National Economic Council, said on Jan. 16 that the administration was weighing a policy to allow Americans to withdraw money from their 401(k)s for housing. He noted that full details would be unveiled at Davos. However, President Donald Trump later signaled skepticism, saying he wasn’t a “huge fan” of the plan.

The government is suddenly on the brink of another shutdown, with tensions escalating after a fatal shooting in Minneapolis involving federal agents during immigration protests. The incident has intensified partisan divides, raising the likelihood of disruption within days.

Senate Minority Leader Chuck Schumer announced Democrats will block any funding bill that includes allocations for the Department of Homeland Security, citing concerns over enforcement practices. Republicans counter that DHS funding is essential to maintain border security and keep government operations running, setting up a high-stakes standoff that could make this shutdown different from the last.

The Trade Desk’s finance chief is out after less than six months, and investors reacted sharply. Shares of the advertising technology company dropped 8% Monday, leading S&P 500 decliners, after CFO Alex Kayyal was replaced on an interim basis by longtime executive Tahnil Davis. Davis, the firm’s Chief Accounting Officer with 11 years at the company, will serve as interim CFO while a permanent successor is sought.

Kayyal, a former Salesforce executive and Lightspeed Venture Partners partner, had only been appointed in August. The company offered no further explanation for his departure but reaffirmed its fiscal fourth-quarter guidance, projecting revenue of at least $840 million and adjusted EBITDA of about $375 million. Results are scheduled for release on Feb. 25.

Despite its position as a leading independent advertising technology platform, The Trade Desk’s shares have plunged more than 70% over the past year, underscoring investor concerns about leadership stability and future growth.

CoreWeave shares surged Monday after the cloud computing firm deepened its partnership with Nvidia, reigniting investor enthusiasm around artificial intelligence. The companies announced plans to accelerate CoreWeave’s AI data center expansion using Nvidia’s technology stack, a move that strengthens CoreWeave’s role in the fast-growing AI infrastructure market.

Nvidia, which previously invested $250 million during CoreWeave’s IPO last March, agreed to add another $2 billion to the company. In return, CoreWeave will deploy Nvidia’s newest products, including advanced storage systems and a next-generation CPU, underscoring the strategic importance of the partnership.

Despite slumping late last year amid AI bubble concerns, CoreWeave stock climbed 8% in recent trading, leading a broader AI rally. Nvidia shares dipped slightly, reflecting investor caution even as the company doubles down on its bet that CoreWeave can scale as a major AI cloud platform.

America’s powerhouse “Magnificent 7” stocks, long drivers of market gains, are showing signs of divergence in early 2026. Alphabet has climbed about 5% since the year began, Amazon is up 4%, while Tesla, Meta, and Nvidia remain little changed. Microsoft and Apple have slipped into negative territory, leaving the Roundhill Magnificent Seven ETF roughly flat.

The group’s earnings season begins this week with results from Tesla, Meta, Microsoft, and Apple. Investors are watching closely as geopolitical tensions and concerns over an AI bubble weigh on sentiment. The mixed performance suggests some companies may be struggling to maintain investor confidence, while others could reignite enthusiasm with strong results.

President Donald Trump’s campaign to influence the Federal Reserve may have unintended consequences, potentially keeping Jerome Powell in a leadership role longer than expected. Though Powell’s term as chair officially ends in May, he could legally remain on the Federal Open Market Committee, and speculation has grown that he might even continue as chair.

Recent tensions between Trump and Powell have fueled debate over the Fed’s independence. With Trump actively seeking a new chair, Powell’s tenure will be a central topic at his upcoming post-FOMC press conference. Analysts, including Evercore ISI’s Krishna Guha, now see it as increasingly likely that Powell will stay on as a governor to safeguard the Fed’s stability after his chairmanship ends.

As of September 2025, roughly 3.1 million federal student loan borrowers were 62 or older, holding $136.9 billion in debt about 8% of the $1.7 trillion total. Their average balance of $44,161 ranks as the third-highest among age groups, underscoring the financial strain many seniors face.

For older borrowers, repayment can be especially challenging on fixed retirement incomes. Options such as income-driven repayment plans, deferment, or forbearance can provide relief, but many still struggle. A quarter of borrowers over 60 had past-due payments, according to Federal Reserve Bank of New York data. Much of this debt stems from attending college later in life or taking out Parent PLUS loans to support children or grandchildren.

Booz Allen Hamilton shares dropped 9% Monday after the U.S. Treasury Department announced it was terminating all 31 of its contracts with the consulting firm, worth $4.8 million annually and $21 million in total obligations. Treasury Secretary Scott Bessent said the move was tied to the actions of former employee Charles Littlejohn, who leaked confidential taxpayer data between 2018 and 2020.

The department emphasized that canceling the contracts was part of President Donald Trump’s directive to root out waste, fraud, and abuse, citing Booz Allen’s failure to safeguard sensitive IRS information. Booz Allen responded by noting its cooperation with the government investigation, which led to Littlejohn’s prosecution, and expressed willingness to continue discussions with Treasury.

The sharp decline followed a brief rally last Friday, when Booz Allen stock surged nearly 7% after raising its fiscal 2026 profit forecast. The cancellation now raises questions about the firm’s government business stability and investor confidence moving forward.

A powerful winter storm blanketed much of the U.S. in snow and ice over the weekend, crippling air travel nationwide. More than 20,000 flights were canceled from Saturday through Monday morning, with another 4,300 already scrapped and over 10,400 delayed on Monday, according to FlightAware.

Airports in New York City, Boston, Philadelphia, and Washington, D.C. were among the hardest hit, with cancellations ranging from half to nearly all departures. Boston Logan reported cancellation rates near 60%, while JFK and Newark hovered around 50%. Some East Coast areas saw more than 12 inches of snow, forcing plows to clear runways as airlines struggled to resume operations.

Gold surged past $5,000 per ounce for the first time, reaching as high as $5,115 Monday morning before settling near $5,040. The rally reflects strong investor appetite for safe-haven assets as geopolitical tensions ease slightly but concerns over U.S. government funding and global trade realignment persist.

Analysts note that gold’s momentum has been building since it first crossed $4,000 in October, with some now projecting prices could climb toward $6,000. The milestone underscores gold’s role as a hedge against uncertainty, especially as markets brace for potential disruptions from political and economic risks.

The Federal Reserve is expected to hold interest rates steady at 3.5% 3.75% during its upcoming meeting, with traders pricing in a 97% chance of no change. After three consecutive quarter-point cuts last year, officials have signaled little appetite for further reductions, preferring to monitor how the economy responds to recent moves.

Markets will be watching closely for Chair Jerome Powell’s remarks, especially as tensions with the White House raise questions about the Fed’s independence. Powell, currently under DOJ investigation, is likely to face pointed questions at his post-FOMC press conference.

The Fed’s dual mandate keeping inflation near 2% while supporting employment remains its guiding principle. For now, officials appear committed to holding rates flat for several months, leaving investors to parse Powell’s tone for clues about future policy direction.

Revolution Medicines shares plunged about 20% in premarket trading Monday after reports that Merck is no longer pursuing a potential acquisition. The Wall Street Journal, citing sources familiar with the matter, said the two companies failed to reach agreement on price, ending discussions that could have valued the biotech at roughly $30 billion.

The sharp decline comes after Revolution Medicines stock had surged more than 185% over the past year, fueled by investor optimism around its cancer-drug pipeline. The setback highlights the volatility biotech investors face when acquisition hopes fade.

Bill Gates has urged caution for investors pouring money into artificial intelligence, warning that the sector’s “hypercompetitive” nature means not everyone will come out ahead. Speaking in December, the Microsoft cofounder said a “reasonable percentage” of today’s expensive AI stocks cannot justify their valuations, adding, “Not all of these valuations will end up going up. Some of them will go down.”

His comments come as hyperscalers including Microsoft, Alphabet, Amazon, Meta, and Oracle spent $400 billion on infrastructure in 2025, with plans to increase spending by a third in 2026. While such investments highlight the scale of AI’s growth, they have also fueled speculation on Wall Street, pushing some AI stocks to eye-watering levels.

USA Rare Earth (USAR) shares soared Monday after the U.S. Department of Commerce agreed to take an equity stake in the company. The Stillwater, Oklahoma-based firm signed a non-binding letter of intent to receive $1.6 billion in federal funding in exchange for issuing 16.1 million shares and 17.6 million warrants to the agency.

The company also secured $1.5 billion in private investment through a PIPE transaction anchored by Inflection Point, with participation from major mutual funds. USA Rare Earth emphasized the deal’s strategic importance, highlighting its “mine-to-magnet” platform as critical to closing the rare earth and mineral supply gap for industries vital to U.S. national security, including semiconductors and advanced manufacturing.

The announcement confirmed earlier reports that the Trump administration planned to invest $1.6 billion for a 10% stake, fueling a 35% surge in shares earlier Monday. USA Rare Earth stock has already more than doubled in 2026, closing at $24.77 per share.

• Indexes higher: The Dow (+0.6%), S&P 500 (+0.5%), and Nasdaq (+0.4%) all closed up, putting them within 0.4% of record highs.
• Gold milestone: Futures crossed $5,000/oz for the first time, peaking above $5,100 before settling near $5,040. Silver also hit a record above $117 before easing to $108.
• Dollar weaker: The U.S. dollar index slipped to 97.03, with further weakness against the yen.
• Treasury yields: 10-year yield dipped slightly below 4.22%.
• Airlines hit: Delta, American, and JetBlue shares slipped as a winter storm canceled more than 20,000 flights.
• Other assets: Bitcoin traded around $87,600; crude oil eased to $60.80/barrel.

Corporate movers:

• Intel fell 5.7% after Friday’s 17% plunge on weak outlook.
• Tesla dropped 3% ahead of earnings Wednesday.
• Apple rose 3% before Thursday’s report.
• CoreWeave surged 6.3% after Nvidia’s $2B investment.
• USA Rare Earth gained 8% on a $1.6B U.S. government funding deal.