US Session: US Markets to Open Cautiously Today, Investors Cautious Ahead of Key Reports

Here are five key topics investors need to know at the start of the trading day:

1. Washington Moves Markets Again
   Further statements from the White House are strongly influencing trading, this time focusing on rare earth elements, Treasury contracts, and the healthcare sector.
   Shares of USA Rare Earth rise nearly 8% after the company announces that the U.S. Department of Commerce will acquire an equity stake. Plans include a $1.3 billion loan and $277 million in federal funding. During the session, the stock jumps as much as 29%.
   At the same time, shares of Booz Allen Hamilton fall about 8% after the Treasury Department cancels its contracts with the consulting firm. The total value of commitments is approximately $21 million.
   After regular trading, healthcare insurers sharply decline as the Trump administration discusses keeping Medicare Advantage rates nearly unchanged for the next year. Shares of CVS Health, Humana, UnitedHealth Group, and Elevance Health trade significantly lower before the market opens.
2. Corporate Leaders Between Business and Politics
   The death of Alex Pretti following federal agency intervention in Minneapolis continues to generate reactions nationwide, including in corporate circles. Leaders of major companies are trying to carefully navigate a highly polarized environment following Donald Trump’s return to the White House.
   New Target CEO Michael Fiddelke tells employees that the violence and loss of life are extremely painful for the community without delving into political details. Unlike 2020, many tech leaders are remaining silent for now.
   The White House has softened its tone, emphasizing that no one in power wants violence on U.S. streets.
3. Companies on the Move
   Shares of General Motors rise over 4% after the automaker reports better-than-expected profits. The company announces a 20% increase in its quarterly dividend and a $6 billion share buyback program.
   American Airlines misses revenue and earnings expectations, but shares rise about 3% due to a more optimistic 2026 forecast.
   Boeing shares increase about 1% after reporting higher revenue and strong sales growth.
4. Nike Layoffs
   Nike announces it will cut 775 employees, with the most affected being logistics centers in Tennessee and Mississippi. The company states that the restructuring aims for more efficient operations and a return to sustainable profitable growth, including through greater use of automation. This follows the previously announced 1,000 corporate layoffs last year.
5. GameStop Story Continues
   About five years after the famous short squeeze began, GameStop is again in investors’ focus. While trading of so-called meme stocks has waned, retail investor participation in the market remains high. According to BlackRock, they now account for nearly 20% of the average daily turnover of U.S. stocks.
   GameStop shares rise about 4% after Michael Burry announces he is buying shares in the company. He emphasizes that he is not relying on a new short squeeze but is betting on the long-term strategy and management of CEO Ryan Cohen.

S&P 500

S&P 500 futures rise on Tuesday as major stock indices begin a busy week of corporate earnings on a positive note. Investors are also turning their attention to the Federal Reserve’s interest rate decision, which will be announced later this week.

Futures on the broad index increase about 0.3%, Nasdaq 100 futures add 0.6%, while Dow Jones futures fall around 270 points, or 0.5%. Pressure on the Dow comes from declines in UnitedHealth shares.

The technology sector again supports the market in early trading. Apple shares rise over 1%, Meta Platforms add about 0.2%, and Microsoft gains nearly 0.6% ahead of key earnings reports.

U.S. stocks start the week strongly. On Monday, the S&P 500 rises 0.5%, the Dow Jones adds about 314 points, and the Nasdaq Composite climbs 0.4%, supported by gains among large tech companies.

This week, over 90 S&P 500 companies are scheduled to release quarterly results. Meta, Microsoft, and Tesla report on Wednesday, and Apple presents results on Thursday. So far, the earnings season has been strong, with about three-quarters of the companies in the index exceeding expectations, according to FactSet data.

According to Adam Parker, founder and CEO of Trivariate Research, market focus remains on earnings reports. He notes that the key question is whether the momentum will continue in the coming months despite higher expectations for the second half of the year.

Among the losers on Tuesday are major healthcare insurers. Their shares drop sharply after the Centers for Medicare & Medicaid propose an average increase of only 0.09% in Medicare Advantage payments to insurers for 2027. Humana shares fall about 15%, CVS Health loses 11%, and UnitedHealth declines nearly 14%.

Meanwhile, President Donald Trump announces that he will raise tariffs on automobiles, pharmaceuticals, and lumber from South Korea from 15% to 25%, citing delays in the South Korean parliament’s approval of the trade agreement.

Later this week, the Federal Reserve will hold its first meeting of the year. Expectations are for the central bank to keep the key interest rate in the 3.5%–3.75% range, with markets looking for signals on potential future cuts. Interest rate futures continue to reflect a probability of two 25-basis-point cuts by the end of 2026.

From today’s macroeconomic data, investors will monitor the Consumer Confidence Index and the latest housing price data, which may provide additional guidance on the state of the U.S. economy.