The S&P 500 climbed to a record high on Tuesday, extending its winning streak to a fifth straight session, as investors assessed a wave of corporate earnings. Gains in the broader market came despite sharp losses in health insurance stocks after the Trump administration proposed only modest increases to Medicare Advantage payment rates.
The benchmark index is now trading just 15 points below the closely watched 7,000 level, which analysts see as a potential area of technical resistance. The Nasdaq also advanced, touching a near three-month high as earnings announcements dominated market attention.
Logistics firms offered a positive signal on the U.S. economy. United Parcel Service rose 4.8% after forecasting higher revenue in 2026, while rival FedEx gained 3%. Results from parcel carriers are often viewed as a key indicator of overall economic activity.
Industrial and auto stocks also posted strong gains. Boeing climbed 1% after returning to a profit in the fourth quarter, while General Motors surged 9.2% after reporting higher core earnings for the same period.
Airline stocks, however, lagged. American Airlines slipped 3.6% despite issuing a 2026 profit outlook above estimates, and JetBlue dropped 6% after reporting a wider-than-expected quarterly loss. The sector continues to face disruptions from severe winter weather across the U.S. East Coast.
The Dow Jones Industrial Average underperformed the broader market, weighed down by a sharp 18.7% drop in UnitedHealth. The decline followed concerns that proposed Medicare payment rates could pressure future profitability. Shares of Humana and CVS also fell steeply, down 19.6% and 12.2%, respectively.
By 11:31 a.m. ET, the Dow was down 310.30 points, or 0.63%, at 49,102.10. The S&P 500 gained 36.37 points, or 0.52%, to 6,986.60, while the Nasdaq Composite advanced 238.19 points, or 1.01%, to 23,839.55.
Focus turns to Big Tech earnings
Major technology stocks extended recent gains, with Apple and Broadcom rising about 2% each, while Nvidia and Microsoft added roughly 1.8%. Amazon also moved more than 1% higher.
Attention is now shifting to earnings from Meta, Microsoft, and Tesla, due on Wednesday. These results will kick off reports from the so-called “Magnificent Seven” and are expected to test investor confidence in the AI-driven rally that has fueled Wall Street’s gains over the past year.
Recent signs of crowding in AI-related trades have prompted some investors to rotate into smaller and undervalued stocks. The Russell 2000 has risen more than 7% this month, while the S&P 600 small-cap index is up over 6%, compared with a roughly 2% gain for the S&P 500.
Market participants are closely watching capital spending trends tied to artificial intelligence. Analysts say upcoming earnings will help determine whether investors remain comfortable with rising AI-related investment costs.
In total, 102 S&P 500 companies are scheduled to report earnings this week. Of the firms that had reported by last Friday, nearly 80% have exceeded analyst expectations, according to LSEG data.
The information technology sector gained 1.8%, led by Corning, which jumped 15% to its highest level since 2000 after signing a deal with Meta worth up to $6 billion to supply fiber-optic cables for AI data centers.
Fed meeting in focus
The Federal Reserve began its two-day policy meeting on Tuesday, with investors widely expecting interest rates to remain unchanged. Markets are closely monitoring policymakers’ guidance for clues about the economic outlook and future leadership dynamics within the central bank.
Adding to the mixed economic picture, U.S. consumer confidence unexpectedly fell in January, dropping to its lowest level since 2014.
