Markets brace for Fed decision as Big Tech earnings loom and Amazon unveils another sweeping round of layoffs

Wall Street’s attention on Wednesday, January 28, 2026, centered on two forces that have driven markets for months: interest-rate expectations and Big Tech’s ability to keep delivering growth while spending heavily on artificial intelligence. Stock futures pointed higher ahead of the Federal Reserve’s policy update, with traders largely expecting officials to keep rates unchanged, but watching closely for the tone of Chair Jerome Powell’s press conference and any hints about the path of policy in 2026. At the same time, a trio of mega-cap earnings reports—Tesla, Microsoft and Meta Platforms—set up a major after-hours test for sentiment, particularly around AI demand, cloud growth, and whether enormous infrastructure budgets are translating into durable returns.

The broader macro backdrop remained mixed. Equities were coming off a session in which the S&P 500 notched another record close, reflecting continuing momentum in technology shares, while the Dow’s performance was weighed down by sharp moves in large constituents. Beyond stocks, investors also tracked safe-haven and alternative assets: gold continued to trade near record territory and bitcoin hovered around the high-$80,000s to near-$90,000 range, reinforcing the view that markets are pricing a complicated blend of optimism and uncertainty.

Corporate news added another layer of volatility. Amazon told employees it would eliminate roughly 16,000 jobs, another major reduction following earlier cuts, as the company reshapes teams and reallocates resources amid a wider tech-sector recalibration. The move underscored a theme that has repeated across the industry: even firms reporting strong revenue lines are trying to operate with leaner structures while sustaining costly AI investment programs. For workers, it is another reminder that efficiency drives remain a defining feature of the post-pandemic economy; for investors, it is a signal that managements are intent on protecting margins despite aggressive spending cycles.

Meanwhile, the geopolitics of semiconductors continued to influence the market narrative. Reports indicated Chinese authorities had cleared major domestic players to place orders for Nvidia’s H200 accelerators, a notable development because access to high-end chips can materially shape how quickly large platforms can train and deploy advanced models. Even with shifting export rules and licensing constraints, the story highlighted that AI competition is being fought not only in labs and boardrooms, but also through policy and supply-chain approvals.

Taken together, the day’s agenda left investors with little margin for complacency. The Fed’s message on inflation and employment could reset expectations for cuts—or confirm a longer pause—while earnings commentary from Tesla, Microsoft and Meta was poised to either validate the bullish AI narrative or expose new cracks. Add in headline-driven swings from layoffs and chip policy, and Jan. 28 shaped up as a session where the biggest question was not what happened in the last quarter, but how companies and policymakers expect the next one to unfold.