GoAI Market Wrap - 28th Jan

Stock Market  

On Tuesday (January 27), US major indices closed mixed. Boosted by strength in tech and chip stocks, the S&P 500 hit a new record high, while UnitedHealth's sharp drop weighed on the Dow.

 

At close:S&P 500 +0.41% to 6,978.60 (fresh record high, surpassing January 12 close), Nasdaq Composite +0.91% to 23,817.10, Dow Jones -0.83% to 49,003.41.  

 

Among the Magnificent Seven, six advanced: Nvidia and Apple rose over 1%, Microsoft and Amazon gained more than 2%, with only Tesla declining. This reflects broad investor optimism ahead of earnings from these tech giants.

 

This week, over 90 S&P 500 companies will report quarterly results, including Microsoft, Meta, and Tesla after Wednesday's close, and Apple after Thursday's close.

 

Thomas Martin, senior portfolio manager at Globalt Investments, commented:  

“Everyone is focused on any insights into the trajectory of AI technology.”  

 

He added that investors will zero in on companies’ capital expenditure levels and AI commercialization updates: “Beyond total capex and opex, the commentary around these will be key.”  

 

Late last year, elevated valuations in AI and growing bubble fears weighed on markets. Martin believes that while some questions remain, investor interest in AI will persist:  

“AI isn’t going away, and neither is data center construction. Applications, models, agents, robotics — all of this will continue to evolve and develop.”

 

In contrast to tech strength, several major health insurers plunged sharply on Tuesday: UnitedHealth -19.61%, Humana -21.13%, CVS -14.15%, Elevance Health -14.33%.  

 

The prior day, the Centers for Medicare & Medicaid Services proposed only a 0.09% net payment increase for Medicare Advantage plans in 2027 — far below analyst expectations.  

 

UnitedHealth also guided for a 2% revenue decline to $439 billion in 2026 and plans to reduce insured membership by over 2 million.

Global Markets  

Trump: New Fed Chair Announcement Coming Soon  

 

In a speech in Iowa on January 27 local time, Trump again criticized Fed Chair Powell as “a terrible Fed Chair” who wants to keep rates high as long as possible. Trump said he will announce a new Fed Chair nominee soon.

 

Legendary Stock Picker Will Danoff to Retire — Delivered 10,500% Return at Fidelity Contrafund  

 

Will Danoff, one of the most prolific single-manager stock pickers, who ran Fidelity Contrafund for over 30 years with stellar results, will retire at year-end. Mentored by Peter Lynch, Danoff joined Fidelity in 1986 and took sole charge of Contrafund in 1990.

 

Since then, the fund has returned approximately 10,500% — more than double the S&P 500 — with ~$176 billion in assets at end-2025.

Company News  

Jensen Huang Attends Nvidia 2026 Beijing New Year Party in Black Shirt  

 

On the evening of January 26, Nvidia founder and CEO Jensen Huang appeared in Beijing at the “2026 NVIDIA Beijing New Year Party” to celebrate the Lunar New Year with the China team.

 

Wearing his signature black short-sleeve shirt, Huang joined employees on stage for interactive moments and photos. The event featured a high-tech atmosphere. Earlier reports indicated Huang arrived in Beijing on January 25 to kick off his 2026 China visit.

 

Google Expands AI Plus Subscription to 35 New Markets Including the US  

 

Google is rolling out its Google AI Plus subscription to 35 additional markets, including the US, priced at $7.99 per month in the US.

 

Google Cloud Officially Announces Price Hikes — North America Doubles  

 

Google confirmed it will adjust data transfer pricing for CDN Interconnect, Direct Peering, Carrier Peering, etc., effective May 1, 2026, with rates in North America doubling.

 

Seagate Q2 Revenue Up 22% YoY  

 

Seagate reported Q2 revenue of $2.83 billion (+22% YoY, beat estimate of $2.75 billion); adjusted EPS $3.11 (vs $2.03 last year, beat estimate $2.83). Q3 guidance: $2.8–3.0 billion (vs estimate $2.78 billion).

 

GM CFO: 2026 Tariff Costs Expected at $3–4 Billion  

 

GM CFO said 2026 tariff costs are projected at $3–4 billion; 2025 tariff costs totaled less than the previously expected $3.1 billion.

 

US Ambassador to Canada: Buy Enough 88 F-35s or NORAD Arrangements Will Change  

 

US Ambassador to Canada Pete Hoekstra warned that if Canada does not move forward with purchasing 88 F-35 jets, NORAD arrangements will be adjusted and the US will deploy more fighters into Canadian airspace more frequently.

 

LVMH Q4 Fashion & Leather Goods Sales Weak — Luxury Sector Still Under Pressure  

 

LVMH’s key fashion business saw sales decline during the holiday quarter, signaling ongoing demand softness for the Louis Vuitton parent. Organic sales in fashion & leather goods fell 3% in Q4 (vs analyst estimate of -2.94%). US-listed ADRs fell 1% after the statement.

Forex & Commodities  

Oil prices rose Tuesday on Iran tensions, severe US weather, and dollar weakness. WTI March crude settled at $62.39 (+2.9%); Brent March crude at $67.57 (+3.02%).  

 

Trump said he is not concerned about a falling dollar, noting it can move “like a yo-yo.” After his comments, the dollar index fell over 1% to its lowest level since February 2022.

 

Gold hit another all-time high amid dollar weakness. Spot gold closed +3.3% at $5,180.2/oz; spot silver +7.92% at $112.16/oz.

Key Events  

January Pause on Rate Cuts Almost Certain — Fed-White House Tensions Add Uncertainty  

 

The Fed will announce its first policy decision of the year. With US economic resilience and persistent inflation pressures, markets widely expect a pause. Per CME FedWatch as of January 27, the probability of a 25 bps cut is only 2.8%, while holding steady stands at 97.2%.

Cryptocurrency  

Bitcoin +1.22% to $89,310.24.  

 

Ethereum +3.52% to $3,018.02.

 

XRP +0.43%, BNB +2.53%, Solana +2.43%.  

 

Dogecoin +2.80%, Cardano +2.00%.

Key Events  

Gold Is Soaring — Why Isn’t “Digital Gold” Bitcoin Acting as a Safe Haven?  

 

A recent CoinDesk analysis by Francisco Rodrigues explores a puzzle for crypto advocates: why doesn’t bitcoin behave like gold as a safe haven during market turmoil?  

 

Rodrigues notes that in theory, bitcoin — as a censorship-resistant “sound money” — should shine in uncertain times. In reality, it’s often the first asset sold in panic. Its 24/7 trading, deep liquidity, and instant settlement make it the easiest to liquidate for cash during uncertainty.

 

Bitcoin is better suited to hedge long-term fears like fiat debasement or sovereign debt crises, while current volatility is viewed as “cyclical.”