Stock Market Today, Jan. 28: Fed Holds Rates Steady As Megacap Earnings Begin

S&P 500 (SNPINDEX:^GSPC) slipped 0.01% to 6,978.03 today in muted post-Fed trading. The Nasdaq Composite (NASDAQINDEX:^IXIC) rose 0.17% to 23,857.45 near record territory, and Dow Jones Industrial Average (DJINDICES:^DJI) inched up 0.02% to 49,015.60.

Market movers

Earnings disappointment hit industrials as water solutions and software company Badger Meter (NYSE:BMI) dropped 11.00% to $146.32 after a revenue miss. Megacap earnings are in the spotlight, with results from Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) today. Tesla reported after market close, beating estimates but with a decline in revenues.

Meanwhile RBC reiterated its “Outperform” rating on Intuit (NASDAQ:INTU), suggesting its recent pullback could be a buying opportunity. C3.ai (NYSE:AI) rose 4.21% to $13.13 on merger headlines.

What this means for investors

As expected, the Federal Reserve did not cut interest rates today, holding the benchmark at a range of 3.5%-3.75%. Speaking after the decision, Fed Chair Jerome Powell pointed to an improving economic outlook and a stabilizing unemployment rate. CME FedWatch now estimates there will be two rate cuts this year, with analysts leaning toward a first cut in June.

Nasdaq rose slightly ahead of this week’s artificial intelligence (AI) and megacap earnings. Meta surged in after-hours trading after beating analyst expectations. Microsoft slipped in spite of better-than-expected results, potentially because of investor concerns about high AI spending. Apple (NASDAQ:AAPL) will report tomorrow.

Results from top tech companies will give investors a better understanding of how the AI market is developing, particularly as fears of elevated prices spark talk of a 2026 correction.

Emma Newbery has positions in Apple. The Motley Fool has positions in and recommends Apple, Intuit, Meta Platforms, Microsoft, and Tesla. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.