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Federal Reserve Chair Jerome Powell is expected to get reporter questions about Trump's efforts to intimidate the Fed.

Photo by Chip Somodevilla / Getty Images

Key Takeaways

• The Federal Reserve will conclude its first meeting of 2026 on Wednesday and is expected to hold interest rates steady.
• Investors and economists alike will be listening for any updates from Chair Jerome Powell on President Donald Trump's ongoing efforts to intimidate the central bank to slash interest rates.
  

The Federal Reserve will likely pause its interest rate cuts on Wednesday, but analysts are watching for any hints that it will resume later this year.

The Fed, which kicked off its two-day meeting on Tuesday, lowered interest rates three times in late 2025 to boost a weakening job market. Now, however, the labor market seems to be stabilizing, and strong consumer spending continues to fuel economic growth.

Markets are forecasting a delay in any potential 2026 cuts—and will look to Fed Chair Jerome Powell for validation of those views. Powell will hold a press conference at 2:30 p.m. ET on Wednesday,  when reporters are sure to ask him about President Donald Trump’s attacks on the Fed.

Powell isn’t expected to say much new on that front. But analysts also don’t expect him to say much on the Fed’s rate plans for the year either. He might offer a slight indication that the Fed may cut rates again, but provide little guidance on when. 

Why This Means For You

The Federal Reserve's fed funds rate influences a wide range of interest rates, including those on credit cards and certificates of deposit.

“While Powell is likely to sound noncommittal around near-term rate cuts, we expect him to remind market participants that the median Fed official still looks for easing this year,” wrote Oscar Munoz, chief U.S. macro strategist at TD Securities. “The path of least resistance continues to be further rate cuts.”

The Fed last year lowered its benchmark federal funds rate to between 3.5% to 3.75%, continuing to bring borrowing costs down after the inflation spike in 2021 and 2022 forced the Fed to sharply raise rates.

Hawks Versus Doves

It wasn’t unanimous in doing so. The Fed’s 19-member committee was unusually split in 2025, with dissents from hawks arguing against rate cuts and from doves seeking more aggressive action.

Recent economic data have “tilted a bit more toward the hawks,” wrote Scott Anderson, BMO’s chief U.S. economist, which bolsters the case for Wednesday’s pause in rate cuts. Employment growth remained sluggish in December with some 50,000 jobs added, but the unemployment rate slipped to 4.4%. 

Last year’s government shutdown ended up having “no visible impact on real consumer spending growth,” Anderson wrote. Retail sales rose sharply before the holidays, which has economists hiking their GDP projections.

“Expect Powell to emphasize that policy remains in a ‘good place’ right now, with little urgency to act in either direction,” Anderson wrote.

Investors have reacted to the sunnier prospects by delaying their expectations for the Fed’s next cut. 

A March rate cut seemed like a coin flip a month ago, but traders now see only a 16% chance of that, according to the CME Group’s FedWatch tool, which uses futures markets pricing to determine probabilities. Some economists now anticipate the Fed may not cut rates at all in 2026—or at least wait until the second half of the year.

A Data Surprise

“There is no hurry to act,” Bank of America economist Aditya Bhave wrote.

Even so, the shift to more hawkish market pricing “creates risks of a dovish surprise,” Bhave wrote, if Powell’s remarks lead investors to swing back to betting on more cuts. 

Bhave flagged a key question for Powell’s press conference: how will he frame December’s lower unemployment rate and its impacts on Fed policy? 

“Markets will be sensitive to the extent to which Powell leans into the decline … or downplays it as just a single month's worth of data,” Bhave wrote.

January’s jobs report, which is due out on Feb. 6, will provide more clarity on whether markets’ more hawkish expectations for the Fed will prove right.

“It would take only one bad labor market report to prompt a swift reappraisal,” wrote Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. “Still, we concede that the path to a March easing has narrowed.”

Politics Takes Center Stage

All the economic questions, however, may be overshadowed by President Donald Trump’s attempts to reshape the central bank.

“Powell's press conference might be dominated by questions about politics rather than policy,” BofA’s Bhave wrote.

Trump has repeatedly slammed the Fed for not cutting interest rates more quickly, arguing that high borrowing costs hold back the economy. 

The tensions reached a new high this month, with Powell pushing back on Department of Justice subpoenas relating to the Fed’s headquarters renovations. In a video response, Powell said he kept lawmakers informed about the HQ costs and that they were “pretexts” for Trump to intimidate the Fed into slashing rates.

Trump has also sought to fire Fed Governor Lisa Cook, citing still-unresolved allegations of mortgage fraud, which would open up a seat at the Fed for Trump to fill. At a hearing last week, Supreme Court officials were skeptical that he could fire Cook and raised concerns that the Fed might lose its independence to make policy decisions. Powell attended the Supreme Court hearing.

Having weighed in already, it’s not clear whether Powell will say more on the topic on Wednesday. 

He may also stay mum on whether he’d remain on the Fed board past May. His four-year term as Fed chair expires then, but he’d still be able to vote as a regular board member until 2028.

Powell's recent pushback against Trump's attacks could make him more likely to remain on the Fed board after his leadership role expires, according to Larry Meyer, a former Fed governor and co-founder of Monetary Policy Analytics. That would give Trump one fewer opening on the Fed for now.

Still, Meyer added, Powell "does not owe an answer on this just yet."

UnitedHealth Group stock plummeted, leading the Dow Jones Industrial Average lower, on Tuesday.

Timothy A. Clary / AFP via Getty Images

Key Takeaways

• As the S&P 500 and Nasdaq rose Tuesday, the Dow Jones Industrial Average fell 0.8%, dragged down by slumping UnitedHealth Group stock.
• UnitedHealth, one of the priciest stocks in the blue-chip Dow, tumbled nearly 20% Tuesday after reporting disappointing earnings.
• UnitedHealth stock shaved 422 points off the Dow, accounting for all of the index's 409-point decline on Tuesday.

The Dow Jones Industrial Average missed out on a rally today thanks in large part to one very influential stock. 

The Dow fell 0.8% Tuesday. Meanwhile, the S&P 500 and Nasdaq gained 0.4% and 0.9%, respectively, boosted by rising chip stocks and other AI infrastructure providers. But it wasn’t just roaring AI stocks lifting those indexes: The 30-component Dow was being dragged down Tuesday.

A familiar culprit was to blame. Shares of UnitedHealth Group (UNH) tumbled nearly 20%—they lost $69 each—after getting hit with a double whammy. Late Monday, Medicare administrators said payments to private Medicare Advantage plans will barely increase next year; this morning UnitedHealth forecast total revenue will decline this year as it scales back operations. 

Why This Is Important

The Dow Jones Industrial Average is one of the most widely-followed measures of stock market performance. Its price-weighted methodology makes it an idiosyncratic gauge that can diverge sharply from the other major indexes due to big single-stock moves.

UnitedHealth’s slump was bad news for the price-weighted Dow, in which stocks with the highest nominal stock prices have the most impact on the index’s performance. By contrast, the capitalization-weighted S&P 500 and Nasdaq are more influenced by the companies with the largest market values. 

With a stock price of $351.64 heading into today's trading, UnitedHealth Group was the sixth-most expensive stock in the Dow, and thus the price-weighted index’s sixth-most influential component. In the end, today's drop shaved about 422 points off the index.

The Dow wasn’t helped by its most influential component, Goldman Sachs (GS), shares of which slipped 0.2% to about $930. Shares of Home Depot (HD) and American Express (AXP), two other companies with larger Dow weightings than UnitedHealth, both fell more than 1%.

Still, UnitedHealth alone pulled the Dow into the red on Tuesday, as its fall led to more lost points—the 422 mentioned above—than the 409 recorded by the index itself. (The Dow's level is calculated by summing the daily price change of the index's 30 stocks and dividing the total by the Dow Divisor.)

A similar dynamic played out several times last year, with UnitedHealth’s financial woes occasionally single-handedly tanking one of the most widely-cited gauges of stock market performance. 

This article has been updated since it was first published to reflect closing prices for Tuesday.

Shares of Starbucks have been steady climbers in the early going of 2026.

James Manning / PA Images via Getty Images

Key Takeaways

• Shares of coffee chain Starbucks have outpaced the S&P 500 this year, rising as investors are signaling some hope that the company's turnaround plan is working.
• Two events this week—quarterly financial results and an investor day—could help extend that run.

Starbucks stock has been percolating all year. You might even say it's finally hot.

Coffee quips aside, shares of Starbucks (SBUX) are showing sustained signs of life for the first time since the aftermath of the hiring of CEO Brian Niccol in late summer 2024. While they're still off those post-hire highs, they've risen about 14% so far this year, easily outstripping the S&P 500. The stock, currently trading at around $96, is near its highest level in 10 months.

Could this continue? Two events this week could help answer that question.

Why This Matters to Investors

Starbucks was for years a beloved stock that consistently rose on the back of steady growth. Now investors are looking for signs that its CEO can deliver on an ambitious turnaround plan. The shares have climbed this year, and two big events—earnings and an investor day—could give them another lift.

Its fiscal first-quarter financial results are due Wednesday morning. An investor day event, set to feature comments from Niccol and other executives, is slated for a day later. They follow a previous round of quarterly results that included same-store-sales trends suggesting that the company's "Back to Starbucks" turnaround plan was bearing fruit.

Meantime, Starbucks has continued to roll out menu changes and other announcements as it looks to again convince customers that its cafes are the kind of places they want to sit and spend. Recent menu announcements include alcoholic cocktails as well as protein drinks, baked goods, and a new chai recipe.

Wall Street's price target for Starbucks shares, based on Visible Alpha's mean, is right around current prices—a sign that analysts may be looking for clear-cut reasons to get more optimistic. But there are signs of bullishness out there already: Bank of America on Monday moved its target on the shares up slightly to $120, the highest tracked by Visible Alpha.

"We expect the market to pay a higher multiple on temporarily depressed earnings given our view that [the company's] brand remains fundamentally strong and that significant opportunities for improvement lie in reallocating resources," the analysts wrote.

Corning shares gained more than 80% in 2025

Cheng Xin / Getty Images

Key Takeaways

• Corning shares surged Tuesday after the glass and fiber optic cable maker announced a $6 billion deal with Meta to supply its data centers.
• The company is a supplier to several tech heavyweights including Nvidia and Apple, and has been a big beneficiary of the AI boom.

A deal with Meta Platforms (META) is the latest piece of good news boosting Corning (GLW) stock.

Corning and Meta announced $6 billion deal for Corning to supply the Facebook and Instagram parent with fiber optic technology and cables for its AI data centers. Corning said the deal will allow it to expand its manufacturing footprint in North Carolina with a new facility and increases in hiring.

Corning shares were up 17% around $111 in Tuesday afternoon trading following the announcement, near their record set during the dot-com bubble of 2000, while Meta shares were down less than 1%.

Why This Is Significant

The agreement with Meta marks the latest AI-driven deal for Corning, which makes fiber optic cables used in data centers, and has been a big beneficiary of the AI trade.

Corning's stock soared more than 80% last year, following a 50% rise in 2024, thanks in part to a boost from AI-driven business. The company, which is a supplier to tech giants such as Nvidia (NVDA) and Apple (AAPL), routinely topped estimates and lifted its forecasts in 2025.

Wall Street analysts have said they expect Corning's AI exposure and partnership with Apple could also provide more opportunities for future growth, including potentially making the complex glass required for a foldable iPhone.

Of the six analysts with current ratings tracked by Visible Alpha, five have issued "buy" ratings, compared to one "hold," though the stock has already surpassed their mean target around $100 with its recent gains.

Investors could get further insights into Corning's business when the company reports fourth-quarter earnings before the market opens on Wednesday. Meta is also set to release its latest results tomorrow, among a trio of the Magnificent Seven due to report.

UnitedHealth Group stock plummeted to a five-month low on Tuesday.

Michael Nagle / Bloomberg / Getty Images

Key Takeaways

• UnitedHealth Group shares tumbled Tuesday after the health insurer reported disappointing earnings and the Trump administration announced Medicare rates would be effectively unchanged next year.
• Shares of CVS Health, Humana and other health insurers also fell sharply.
• Health plans have struggled with high healthcare costs in recent years, leading some insurers, including UnitedHealth, to cut back their services.

Shares of UnitedHealth Group led a sell-off in health insurance stocks on Tuesday after the company reported its quarterly results and the Trump administration announced Medicare rates would be effectively unchanged next year. 

The Centers for Medicare and Medicaid Services on Monday night estimated payments to private Medicare Advantage plans will rise just 0.09% next year, a much smaller increase than expected. Next year’s rate increase also pales in comparison to recent years; CMS estimated payments would rise by 5% this year and about 4% in 2025.

UnitedHealth (UNH) stock fell nearly 20%, closing at its lowest level since August and pulling the Dow Jones Industrial Average down on an otherwise positive day for U.S. equities. (Follow Investopedia's live markets coverage here.) Shares of Humana (HUM) dropped 21%, while Aetna owner CVS Health (CVS) and Elevance Health (ELV) each slid 14%.

Why This Is Important

Healthcare stocks, with a few exceptions, have posted lackluster returns in recent years, weighed on by Wall Street's AI obsession and mounting frustration among consumers and politicians over high healthcare costs. The Trump administration's efforts to address affordability ahead of this year's midterm elections could generate more headwinds for the industry.

The healthcare sector entered the year with momentum, having risen double digits in the last months of 2025 as investor concerns about an AI stock bubble drove a risk-off pivot. Still, the sector has trailed the market for years and could continue to lag as political risks loom. Healthcare investors are wary of Health Secretary Robert F. Kennedy Jr., a vocal critic of the industry, and President Trump's push to lower costs in a healthcare system that a record number of Americans say is unaffordable.

While investors digested the news on Medicare rates, UnitedHealth's quarterly results also weighed on sentiment Tuesday. The company's fourth-quarter revenue of $113.2 billion fell short of expectations while adjusted earnings per share were in line with forecasts at $2.11. 

In 2026, total revenue should exceed $439 billion, a 2% year-over-year decrease “reflecting planned right-sizing across the enterprise,” according to the company. UnitedHealthcare, the conglomerate's insurance subsidiary, expects to insure up to 2.8 million fewer people this year, and Medicare Advantage is forecast to account for nearly half of that reduction.

UnitedHealth is in the midst of a turnaround effort prompted by a stock meltdown last year, when shares traded at their lowest price since the depths of 2020’s Covid crash. The stock had its worst day in 25 years last April when it slashed its full-year profit forecast, citing both high health care costs and “heightened care activity.” Shares continued to slide in the following months as the company withdrew its guidance completely, its CEO stepped down, and the Justice Department opened an investigation of its Medicare Advantage billing practices. 

Update—Jan. 27, 2026: This article was updated with closing prices on Tuesday.

Meta's 2026 outlook and what it has to say about its projected spending could take the spotlight when the company reports

Nicolas Economou / NurPhoto / Getty Images

Key Takeaways

• Meta is scheduled to report its quarterly results after the closing bell Wednesday, with Wall Street analysts expecting growing profits and revenues on gains in its ad business.
• Options pricing suggests traders expect Meta's stock could move about 6% in either direction in the days after its results.

Meta is scheduled to report its fourth-quarter results after the closing bell Wednesday. Traders anticipate a big move in the social media giant's stock.

Options pricing suggests traders expect Meta Platforms (META) stock could move close to 6% in either direction by the end of this week. A shift of that size from recent levels around $672 could push shares as high as $712—or drag them back down to about $633, where they were earlier this month.

Why This Matters to Investors

Meta's outlook Wednesday, and the ensuing reaction, could send a message about how eager companies are to test investors' willingness to continue supporting Big Tech's hefty spending on AI.

Meta's 2026 outlook, and what it has to say about its projected capital expenditures, could take the spotlight when the company reports, amid some worries it could be overspending on AI. Analysts at Bank of America said that could set the stock up for gains if Meta's expense forecast proves milder than feared, but warned a larger-than-expected spending outlook could fuel investors' concerns.

BofA also said Meta could top fourth-quarter estimates thanks to momentum in the ad business that accounts for the bulk of the company's revenue, which could soothe worries about AI spending. More details about Meta's rollout of ads on Threads, and reported moves to test premium subscriptions for several of its apps, could help too.

Meta is seen reporting fourth-quarter earnings per share of $8.17 on a nearly 21% year-over-year jump in revenue to a record $58.43 billion, according to estimates collected by Visible Alpha.

Wall Street analysts are overwhelmingly bullish on Meta's stock, which they believe still has room to rise after a roughly 13% climb in 2025. All of the 21 analysts with current ratings compiled by Visible Alpha have issued "buy" recommendations for the stock, with their mean target around $841 suggesting 25% upside from Monday's close.

Silver has been lighting up traders' screens in 2026.

Timothy A. Clary / AFP via Getty Images

Key Takeaways

• Investors have become more obssessed with silver than the artificial intelligence trade, according to Vanda.
• Citi commodities analysts have boosted their price target on the metal, calling it "gold on steroids."

Silver is hardly a runner-up prize these days.

Unease caused by international tensions and perceived risks in the U.S.—such as another government shutdown—have driven investors to hard assets and boosted their prices to record highs. Spot gold's breaching of the $5,000 level topped the podium yesterday, silver has rallied even more furiously than the precious yellow metal.

Spot silver prices are up almost 50% so far this year, beating gold's more-than-15% gain. Though silver had backed off its all-time intraday high of around $117 as of Tuesday, analysts see it continuing to outperform in the near term: While gold's rally has been driven in part by central bank purchases and institutional hedging, individual investors have made silver the hot trade of the moment.

Why This Matters to Investors

While central bank purchases have, in part, driven gold to record highs, silver's rally is driven by a different set of forces—including, analysts say, a lot of retail investor interest.

Analysts have lately called silver "gold on steroids" and "retail's new favourite toy," with some likening it to a meme stock. According to Vanda Research, which tracks investment flows from individual investors, silver has become a "hotter" trade than artificial intelligence-darling Nvidia (NVDA) in terms of trading momentum. Yesterday individual investors poured about $171 million into the iShares Silver Trust (SLV), the largest single-day net retail inflow on record for the ETF, according to the firm.

Michael Antonelli, a market strategist for Baird Private Wealth Management, on Tuesday called silver "GameStop (GME) in 2026." in a social-media post.

Silver is catching bearish attention, too. Trading is split between rally chasers and short-sellers, with the latter betting on a crash via ProShares UltraShort Silver ETF (ZSL), a fund designed to supercharge daily returns from falling prices, Vanda data show.

Emerging-markets investors would appear to to be contributing to the run-up, with prices in Shanghai higher than those in London lately, Citi's commodities research analysts wrote in a Tuesday note. China's only silver ETF is suspending new subscription starting tomorrow "in an effort to rein in retail speculation," the analysts said.

Layton and his team don't expect that to contain demand. They expect silver—what they call "gold on steroids"—to continue to climb until it starts to look "expensive by historical standards" next to gold.

That means if gold trades in the $5,100 to $5,400 range, and the gold-silver ratio—the exchange rate between the two metals—is around 32, the 2011 low, silver would trade as high $170. It would trade at the $300 level if that ratio hits the 1979 low of 14, though Citi sees the latter, as an "extremely unlikely scenario." The bank today raised its near-term price target to $150 from $100—the second boost this month after the metal rallied through the prior forecast.

One risk to watch out for: "China profit taking prior to Chinese New Year," Citi said. That's two weeks away.

This article has been updated since it was first published to incorporate new commentary.

UnitedHealth shares took a hit last year amid an investigation into its Medicare Advantage billing practices

Cheng Xin / Getty Images

Key Takeaways

• Shares of a number of health insurance providers sank sharply Tuesday following a proposal from the federal government.
• The Centers for Medicare and Medicaid Services said it was proposing a 0.09% increase in Medicare payments in 2027, far less than expected after a 5.06% rise this year.

Several health insurer stocks tumbled Tuesday following a proposal from the Centers for Medicare and Medicaid Services that would raise payments to insurers less than expected in 2027.

CMS proposed lifting Medicare insurer payments by just 0.09% next year, well below what the industry was anticipating. Wall Street had forecast a bump between 4% and 6%, according to The Wall Street Journal. That's after payments increased by 5.06% for 2026.

The proposal also includes modifications to rules about diagnosing patients, amid a Department of Justice investigation and Journal reports last year that claimed UnitedHealth Group (UNH) trained its doctors to diagnose Medicare Advantage patients with specific conditions that could result in higher payouts for the insurer, which the company has denied.

UnitedHealth shares sank nearly 20% in early trading Tuesday following the news. Rivals Humana (HUM) and Aetna owner CVS Health (CVS) fell 21% and 11%, respectively.

Why This Matters to Investors

Changes to Medicare payment rates have a substantial impact on the finances of health insurance companies. CMS said its 0.09% increase would be worth about $700 million to the industry.

UnitedHealth also reported fourth-quarter results Tuesday morning, with adjusted earnings per share of $2.11 on $113.22 billion in revenue, roughly in line with estimates compiled by Visible Alpha. The insurance giant's 2026 revenue forecast, however, was lower than expected at $439 billion, compared to the analyst consensus of $455.5 billion.

With Tuesday's losses, UnitedHealth shares have lost nearly half their value over the last 12 months. The stock was pressured for much of 2025 by reports about the DOJ probe and profits that were dragged lower by higher-than-expected claims activity for Medicare Advantage patients.

News of the day for Jan. 27, 2026

The major indexes closed higher on Monday to kick off a busy week of earnings reports.

Timothy A. Clary / AFP / Getty Images

Futures tied to major indexes are mixed this morning as chip stocks gain while health insurance stocks tumble; shares of UntedHealth and other health insurers are sliding after a government proposal to raise payments to Medicare insurers by much less than expected in 2027; UnitedHealth, Boeing and General Motors were among the big-name companies reporting earnings this morning; Micron Technology is leading chip stocks higher after the company said it has broken ground on a new manufacturing facility in Singapore; and Salesforce shares are gaining after the company announced that it has won a contract from the U.S. Army worth up to $5.6 billion over the next decade. Here's what you need to know today.

Futures Point to Mixed Open as Major Indexes Near Record Highs

Futures tied to the S&P 500 and the tech-heavy Nasdaq are higher this morning as chip stocks rise, while Dow Jones Industrial Average futures are sharply lower as shares of UnitedHealth (UNH) plunge. (more on that below) The major indexes each gained on Monday to kick off a busy week of earnings reports, as investors await the Federal Reserve's decision on interest rates tomorrow. The Dow and the S&P 500 come into the day just 0.4% away from their record closing highs. Futures tied to the S&P 500 and the Nasdaq were recently up 0.2% and 0.6%, respectively, while Dow futures slid 0.5%. Gold futures are holding steady this morning at around $5,080 an ounce, after surging above the $5,000 mark for the first time over the weekend and setting a new record high on Monday. Bitcoin was also little changed at around $88,000, while the yield on the 10-year Treasury note was at 4.23%, up from 4.21% at yesterday's close.

Health Insurance Stocks Drop on Report Medicare Payments Will Hold Steady

Several health insurer stocks are tumbling ahead of the opening bell following a proposal from the Centers for Medicare and Medicaid Services to increase payments to insurers by just 0.09% next year, well below what the industry had been expecting. Wall Street had been expecting a bump between 4% and 6%, according to The Wall Street Journal. The proposal also includes modifications to rules about diagnosing patients, amid a Department of Justice investigation following Journal reports last year that claimed UnitedHealth trained its doctors to diagnose Medicare Advantage patients with specific conditions that could result in higher payouts for the insurer, which the company has denied. UnitedHealth also reported fourth-quarter results this morning, with $113.22 billion in revenue and $2.11 adjusted earnings per share coming in roughly in line with estimates, while its 2026 revenue forecasts were lower than expected. UnitedHealth shares were down 16% in recent premarket trading, while Humana (HUM) plunged 17% and CVS Health (CVS), which owns Aetna, fell 12%.

Boeing, GM, UPS Report Results as Earnings Season Kicks Into High Gear

Investors are digesting quarterly results from a number of big-name companies this morning, as Boeing (BA), General Motors (GM), United Parcel Service (UPS) and American Airlines (AAL) have all released earnings reports. Boeing shares were down about 1% recently after the aircraft manufacturer reported fourth-quarter revenue that topped estimates, while its profits were boosted by the sale of pieces of its Digital Aviation Solutions business. GM shares were up nearly 4% after the automaker raised its guidance, boosted its dividend and announced a $6 billion stock buyback plan. GM posted a $3.3 billion loss for the fourth quarter, as it took over $7 billion in charges related to a restructuring of its electric vehicle business. UPS shares also gained about 4% after the shipping giant topped estimates in its fourth-quarter report. American Airlines shares were up more than 3% recently after its first-quarter revenue projection came in higher than expected. Investors will get more earnings over the rest of the week, including highly anticipated reports from major tech companies including Apple (AAPL), Meta (META), Microsoft (MSFT) and Tesla (TSLA).

Micron Leads Chip Rally on Groundbreaking of New Singapore Facility

Shares of Micron Technology (MU) are leading chipmaker stocks higher this morning after the company announced that it has broken ground on construction for a new manufacturing facility in Singapore. The new factory, which will be part of the memory component maker's existing complex in Singapore, represents a roughly $24 billion investment over the next decade, the company said late last night. The new facility is expected to start production in the second half of 2028, and Micron also said that construction for another facility in the Singapore complex designed for high-bandwidth memory chips is on track to "contribute meaningfully" to its chip supply next year. Micron shares, which have more than tripled over the past year amid booming demand for memory and data storage devices from the AI data center buildout, were up 4% recently. Shares of others in the sector, including Taiwan Semiconductor Manufacturing Co. (TSM), Intel (INTC) and Sandisk (SNDK), are also gaining this morning.

Salesforce Stock Gains After Software Maker Receives $5.6B US Army Contract

Salesforce (CRM) shares are rising after the software giant announced that it has been chosen for a contract with the U.S. Army for up to 10 years and $5.6 billion. The Army will be able to use Salesforce's AI software "as the foundation for its agentic enterprise," which the company said will help the Pentagon manage costs and make decisions more efficiently. The contract includes a five-year base period, with another five-year optional buying period with a total purchase ceiling of $5.6 billion, and expands on previous deals where the military would buy individual pieces of software from Salesforce. Shares of the software maker were up 3% in recent premarket trading.

Michael Burry, who inspired the film and book "The Big Short," is perhaps best known for predicting the 2008 crash

Tony Avelar / Bloomberg / Getty Images

Key Takeaways

• Shares of GameStop surged Monday after famed investor Michael Burry reportedly revealed a stake in a Substack newsletter.
• Burry, best known for predicting the 2008 crash, said he believes GameStop CEO Ryan Cohen is raising cash to "make a big buy of a real growing cash cow business."

An OG meme stock just got a vote of confidence from a famous investor.

Michael Burry, the former founder and CEO of Scion Asset Management—who inspired the film and book "The Big Short" and is best known for predicting the 2008 financial crisis—said he's now putting his weight behind a $10 billion video-game and trading-car retailer: GameStop (GME).

"I own GME. I have been buying recently," Burry wrote in his Substack newsletter Monday, according to CNBC. Burry could not be reached in time for publication.

Why This Is Significant

Burry's backing could help boost confidence in shares of GameStop, which has struggled to reinvent its business as falling sales have pressured it to shutter stores.

Shares of GameStop jumped more than 4% Monday following the post, extending a recent rally. The shares have added about a fifth of their value in 2026, though they remain well off the early 2021 highs that marked the height of the meme-stock craze.

Burry reportedly said in his post that he believes GameStop CEO Ryan Cohen “has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash and wait for an opportunity to make a big buy of a real growing cash cow business.”

The company has so far made forays into expanding its collectibles business and buying up Bitcoin as part of its efforts to redefine its strategy.

Gamestop shares got a boost last week after a regulatory filing showed Cohen bought up 1 million shares of GameStop.

Burry, for his part, late last year discussed a shift to "better things" after appearing to step back from his hedge fund. His Substack—it goes by "Cassandra Unchained," the same name by which he for years has gone on X—now has more than 200,000 subscribers and, it says in its description, "is now Dr. Michael Burry’s sole focus."