4:15pm: Wall Street inches up
Investors nudged stocks slightly higher but largely stayed on the sidelines ahead of fresh catalysts.
The Dow Jones closed at 49,533, up 32 points, or 0.1%. The S&P 500 added 7 points to finish at 6,843, also up 0.1%. Meanwhile, the Nasdaq Composite rose 32 points to 22,578, marking a similar 0.1% gain.
Small caps lagged behind the broader market, with the Russell 2000 ending essentially flat at 2,647.
All told, it was a steady, if unspectacular, finish.
3:45pm: Proactive news headlines
- OKYO Pharma Ltd maintained Buy ratings from analysts at Lucid Capital, H.C. Wainwright, and B. Riley Securities after a positive Type C meeting with the US Food and Drug Administration supported its urcosimod trial design for neuropathic corneal pain.
- Trust Stamp Inc said it is in strategic discussions with Nigeria’s National Information Technology Development Agency to enhance the country’s digital trust framework using privacy-first biometric technologies.
- HIVE Digital Technologies reported record third-quarter revenue of $93.1 million, up 219% year-over-year, driven by expansion of its digital infrastructure.
3:00pm: Market movers
- General Mills Inc shares fell more than 7% after the company cut its 2026 outlook, forecasting a 1.5% to 2% decline in organic net sales due to weaker consumer demand and market uncertainty.
- Activist investor Elliott Investment Management has taken a more than 10% stake in Norwegian Cruise Line Holdings Ltd and is pushing for strategic changes to improve the cruise operator’s performance.
- eToro Group Ltd shares jumped nearly 17% after the company reported fourth-quarter adjusted EPS of $0.71, beating Wall Street estimates of $0.64.
- Warner Bros Discovery Inc said it will hold talks with Paramount Skydance Corp about a potential takeover bid following a temporary waiver from Netflix Inc, while reaffirming support for its previously announced merger with Netflix.
- Danaher Corporation agreed to acquire Masimo Corporation for about $9.9 billion in cash to expand its patient monitoring business.
1:45pm: Midafternoon rally
Stocks are modestly higher in midafternoon trading, with major indexes showing small gains.
The Nasdaq rose 0.4%, led by strength in technology and growth-oriented names. The Dow Jones industrials gained 0.3%, while the S&P 500 also added 0.3%, reflecting broad-based buying across sectors.
Investors appear cautious but optimistic, digesting recent economic data and awaiting key updates later in the week that could influence the Federal Reserve’s policy outlook.
1:00pm: Yields dip, commodities slide
US 10-year Treasury yields slipped to 4.02%, their lowest since early December, while stocks edged lower. Even with stronger payrolls, last week’s softer inflation data keeps the idea of Fed rate cuts this year alive—markets are now pricing in about 62 basis points of easing ahead of Fed minutes, GDP, and core PCE reports.
Commodities took a hit too. Gold, silver, and copper all dropped as the US dollar climbed to a one-week high and Iran-US nuclear talks moved forward. Oil slipped a bit, but US natural gas really took a hit, falling around 6%—its steepest drop in four months.
11:50am: Fed minutes should offer clues
The Federal Reserve’s January FOMC meeting minutes, set for release this week, are expected to provide limited new insights, according to UBS analysts. While some market participants have speculated about a potential rate cut in March or April, UBS said “marketing pricing for a rate cut in March or April looks pretty low.”
Analysts noted that while labor market concerns persist, the minutes are unlikely to signal any imminent policy moves beyond what was already discussed in December. At that meeting, “most” participants judged further downward adjustments to the federal funds rate as “appropriate,” though “some” preferred to keep rates unchanged for a period to better assess the effects of prior policy moves.
A large portion of the January meeting, as is customary, focused on organizational matters. Analysts highlighted that the minutes may reveal how the Committee elects its Chair, noting historical ambiguity in transition years. The FOMC also reaffirmed its longer-term inflation target, stating that “inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the Federal Reserve’s statutory maximum employment and price stability mandates.”
UBS suggests investors should watch the minutes for procedural details rather than any major policy shifts, with the substance of discussions likely mirroring December’s consensus on gradual rate reductions in 2026.
10:45am: Week ahead
After a later start to the week, the back half of the week is packed with economic data that could move markets.
Thursday will bring the Federal Reserve’s January meeting minutes and initial jobless claims, followed by Friday’s preliminary fourth-quarter GDP numbers, plus December personal spending and income reports.
Analysts are expecting solid growth in Q4. UBS predicts real GDP rose 2.4% on an annualized basis, helped by steady consumer spending and strong equipment investment.
On the earnings front, Walmart Inc (NYSE:WMT, XETRA:WMT), Alibaba Group (NYSE:BABA), and Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP) are all reporting, while the Chinese New Year holiday could add some extra pressure on US consumer-focused stocks.
9.58am: Nasdaq dives at the open
It's a mixed start for US stocks, with big tech in the red again.
The Nasdaq has opened 1.2% lower to 22,293.85, the lowest since 21 November and on track for what could be a potential sixth weekly reverse in a row. The S&P 500 has dropped 0.7%.
Strategy, CrowdStrike, Applovin, Palo Alto, AMD, Tesla and Micron are among the notable Nasdaq fallers, with Alphabet, Microsoft and Amazon also in the red.
Going the other way, the Dow Jones has opened 0.2% higher, lifted by Apple, Travelers Co, Goldman Sachs and American Express.
7.45am: Nasdaq set to open lower after five-week decline
US stock futures were in the red on Tuesday, with Wall Street reopening after the long weekend with investors still grappling with the recent pullback in technology shares.
Losses are expected to be led by the tech-heavy Nasdaq, where futures were down 0.8%, the S&P 500 down 0.4% and Dow Jones down 0.2%.
This weakness has followed a fortnight of losses for the S&P 500, with last week seeing a decline of 1.4%, while the Nasdaq dropped over 2% and the Dow retreated 0.9% from highs early in the month.
AI-related disruption fears have been weighing on sentiment across multiple sectors, said market analyst David Morrison at Trade Nation, leading to the Nasdaq enduring its fifth straight weekly decline – its longest losing streak since 2022
"Overall, there has been a decline in upside momentum across the US majors since the beginning of this month. Many big tech and certain AI-related stocks have taken a hit as investors continue to question the likely return on investment," Morrison added.
"The spending commitments are so large that many cash-rich corporations have halted share buybacks. Some have issued more stock, and others have turned to debt markets to raise funds for AI investment.
"Meanwhile, software companies have come under scrutiny as investors question their business models given growing competition from AI."
He adds that investors "appear wary of adding to their exposure at current levels. They seem to be sitting on their hands and waiting for a catalyst which will either provide a reason to sell or be".
Aarin Chiekrie, analyst at Hargreaves Lansdown, noted that the US software and services sector is now trading at a discount to the broader sector for just the second time in 30 years.
"For investors willing to stomach some near-term volatility, this looks to be a great time to dive into the market and pick up some software bargains."
On the earnings front, Palo Alto Networks reports after the bell, with DoorDash, Walmart, and Wayfair due later in the week.
Traders' attention will also turn to the Federal Reserve meeting minutes on Wednesday and Friday’s core PCE inflation update.