Stock Markets January 29, 2026

Tech and Industrial Stocks Lead Premarket Moves After Fed Pause and Mixed Q4 Reports

Earnings from major technology and industrial firms drive premarket volatility as investors parse AI spending and forward guidance

By Caleb Monroe META MSFT TSLA IBM BX
Tech and Industrial Stocks Lead Premarket Moves After Fed Pause and Mixed Q4 Reports
META MSFT TSLA IBM BX

U.S. futures inched higher as markets absorbed Federal Reserve policy inaction and a stream of corporate fourth-quarter results. Large-cap technology names showed sharply divergent moves tied to AI investments and cloud performance, while industrials and leisure companies reacted to earnings and guidance.

Key Points

  • Futures rose modestly as markets digested the Fed's decision to keep interest rates unchanged and a slate of fourth-quarter earnings.
  • Big-cap tech showed mixed reactions: Meta and IBM surged after revenue and profit beats tied to AI demand, while Microsoft and ServiceNow fell amid heavy AI spending and cautious guidance.
  • Industrials and leisure stocks saw varied outcomes, with Caterpillar and Royal Caribbean rising on strong results and outlooks, while Whirlpool and Las Vegas Sands declined on disappointing guidance or underperformance.

U.S. stock futures clawed modestly higher on Thursday as traders continued to digest the Federal Reserve's decision to leave interest rates unchanged and a flood of fourth-quarter corporate earnings. Market attention centered on how large companies are balancing investment, especially in artificial intelligence, with profitability and forward guidance.

Below are notable premarket movers and the company-specific developments behind their share-price reactions:

  • Meta Platforms (NASDAQ:META) - Shares jumped 9.2% after the parent of Facebook reported fourth-quarter revenue and profit that topped expectations. The results helped ease investor worries about the return on the social-media firm's substantial AI-related spending.
  • Microsoft (NASDAQ:MSFT) - The software giant's stock fell 6.9% following heavy spending tied to its AI expansion and signs of slightly slower growth at its Azure cloud-computing unit compared with the prior quarter.
  • Tesla (NASDAQ:TSLA) - The electric vehicle maker rose 2.4% after posting fourth-quarter results that beat Wall Street estimates, with commentary indicating a strategic tilt toward AI even as pressures persist in its core automotive business.
  • IBM (NYSE:IBM) - Big Blue climbed 9.9% after beating fourth-quarter revenue and profit estimates, with the company citing increased demand for software services tied to AI, including data management and IT automation.
  • Blackstone (NYSE:BX) - Shares gained 1.1% after the alternative asset manager reported fourth-quarter profit that exceeded expectations, benefiting from heightened dealmaking activity and growth in its data center business.
  • Caterpillar (NYSE:CAT) - The heavy equipment maker rose 1.7% after reporting a stronger-than-expected surge in fourth-quarter revenue, a report that cited demand driven in part by enthusiasm for AI and related energy equipment.
  • Royal Caribbean Cruises (NYSE:RCL) - Shares climbed 7.2% after the cruise operator posted fourth-quarter earnings that met expectations and offered upbeat guidance for 2026, signaling steady consumer demand for cruise vacations.
  • ServiceNow (NYSE:NOW) - The software company slid 7.5% after issuing cautious full-year guidance, a development that weighed on the stock despite healthy fourth-quarter revenue and profit driven by demand for its AI-enabled software.
  • Honeywell (NASDAQ:HON) - Shares rose 1.2% after the company reported higher fourth-quarter revenue and profit, bolstered by strength in its aerospace business and aftermarket services.
  • Whirlpool (NYSE:WHR) - The appliance maker's stock tumbled 10% after the company provided a full-year earnings-per-share outlook that disappointed investors. The company's CEO noted that U.S. import levies have not yet yielded a competitive advantage over foreign rivals.
  • Las Vegas Sands (NYSE:LVS) - Shares dropped 9% after results from its Macao properties underperformed expectations, even as the company's overall revenue for 2025 topped $13 billion.

These premarket moves underscore a market environment where investors are weighing the short-term implications of heavy AI investment against top-line momentum and guidance. Several software and tech firms reported results that reflect strong demand for AI-related products and services, while guidance and margin considerations prompted sharper re-pricing in other names.

At the same time, industrial and leisure companies showed differentiated reactions: some, like Caterpillar and Royal Caribbean, were rewarded for revenue beats and optimistic outlooks, while others faced investor pushback rooted in guidance or region-specific underperformance.

Overall, the session highlighted how earnings season is intersecting with macro policy, as market participants parse the Fed's decision to hold rates steady and the corporate updates that may shape growth and margin expectations going forward.

Risks

  • AI-related capital spending can weigh on margins and investor sentiment, as illustrated by Microsoft and ServiceNow - impacting technology and software sectors.
  • Disappointing forward guidance can lead to sharp share-price declines even after solid quarterly results, as seen with Whirlpool and ServiceNow - affecting consumer appliances and enterprise software sectors.
  • Regional underperformance in key markets may offset strong consolidated revenue, demonstrated by Las Vegas Sands' weaker Macao results despite overall revenue exceeding $13 billion - posing risks for leisure and hospitality firms with regional exposure.

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