Markets focus on Medicare proposal, earnings, and chip strength as futures turn mixed

What moved markets heading into January 27

U.S. stock futures pointed to a split open on Tuesday, January 27, 2026, with technology and chip shares lifting Nasdaq-linked futures while the Dow was dragged down by sharp premarket declines in health insurance stocks. The market setup comes as investors navigate a dense earnings calendar and position ahead of the Federal Reserve’s upcoming interest-rate decision.

A key driver was a government proposal affecting Medicare Advantage and related insurance payments in 2027. The update implied only a modest payment increase—far below what traders and analysts had expected—spooking investors in companies heavily exposed to the Medicare Advantage business model.

Health insurers sell off on payment and rule uncertainty

Shares of UnitedHealth, Humana and CVS Health fell sharply in premarket trading after the Centers for Medicare and Medicaid Services outlined a proposal that would raise payments to insurers by roughly 0.09% next year. The proposal also included rule changes around how diagnoses are handled, with investors attentive to regulatory scrutiny and reports of a Department of Justice investigation related to Medicare Advantage practices.

UnitedHealth also reported results and issued a 2026 outlook, giving traders additional information to reassess growth expectations in a sector where policy changes can quickly alter margins.

Earnings, buybacks, and a chip-led bid for growth

Beyond health care, several major companies reported earnings, including Boeing, General Motors, UPS and American Airlines. GM drew attention after raising guidance, increasing its dividend and announcing a $6 billion share repurchase plan, even as it posted a large quarterly loss tied to significant restructuring charges connected to its electric-vehicle business.

Meanwhile, chip shares outperformed after Micron announced it had broken ground on a new manufacturing facility in Singapore, part of a multi-year investment plan intended to expand capacity amid AI-driven demand for memory and storage.

What to watch next

• Details and industry lobbying around the CMS Medicare Advantage proposal before it is finalized.
• Whether upcoming mega-cap tech earnings reinforce or weaken the chip-led rally narrative.
• The Fed decision and guidance, which could reset risk appetite across sectors.