Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2026.
Brendan McDermid | Reuters
S&P 500 futures ticked higher on Tuesday morning after the major averages started the busy earnings week on a positive note. Investors are also waiting for the Federal Reserve’s rate decision, due later this week.
Futures tied to the broad-market index were last seen 0.2% higher, while Nasdaq 100 futures added 0.5%. Dow Jones Industrial Average futures lost 49 points, or 0.1%, weighed down by a decline in UnitedHealth shares.
In extended trading, shares of several big-name health insurers plunged after the Centers for Medicare & Medicaid Services proposed raising payments to Medicare Advantage insurers by a net average of just 0.09% in 2027. Shares of Humana slid 12%, while CVS Health lost almost 10%. News of CMS keeping rates relatively flat next year was first reported by The Wall Street Journal.
President Donald Trump also said late Monday that he would raise tariffs on South Korean autos, pharmaceuticals and lumber from 15% to 25%. He cited a delay in South Korea’s legislature approving a trade deal the nation had reached with the U.S. last summer.
Stocks kicked off the week strong, aided by gains in major technology names. The S&P 500 advanced 0.5% in Monday’s regular session, while the Dow gained about 314 points, or 0.6%. The tech-heavy Nasdaq Composite climbed 0.4% as Apple, Meta Platforms and Microsoft rose ahead of their earnings reports scheduled later this week.
More than 90 S&P 500 companies are slated to report quarterly earnings this week. They include “Magnificent Seven” giants Meta, Tesla and Microsoft — which are due Wednesday. Apple will share its results on Thursday.
Earnings season has been strong so far, with about three out of four S&P 500 companies beating expectations, per FactSet.
“Top of mind is earnings season. We got 200 companies reporting in the next two weeks and so far, so good,” said Adam Parker, founder and CEO of Trivariate Research. “I think the real issue is that the second half of the year estimates are way too high. And so the question is can we keep the momentum here through April guidance? I think yes.”
Looming this week is the Fed’s first policy decision of the year. The central bank is widely expected to keep its key rate at a target range of 3.5% to 3.75%, but traders will search for clues on when future cuts may come. Fed funds futures trading still suggests there could be two quarter percentage point cuts by the end of 2026, according to the CME FedWatch Tool.
On the economic data front Tuesday, traders will be watching for the latest consumer confidence reading and home price data.
Companies set to report quarterly results on Tuesday include American Airlines and Boeing.