Market Recap: Mixed Session as Microsoft's 10% Plunge Drags Nasdaq Down 0.7%; TechCreate Surges 889%

The U.S. market closed in a mixed tone on January 29, 2026, as energy and financial sectors rallied while tech stocks faltered. Commodities saw a strong rebound with WTI crude oil surging 3.47% to $65.40 and gold hitting $5,407.30 (+1.26%). The Dow Jones Industrial Average edged up 0.11% to 49,071.56, while the S&P 500 dipped 0.13% and the Nasdaq Composite fell 0.72%, led by Microsoft's 10% collapse. Energy (+1.33%) and industrials (+0.69%) outperformed, while information technology (-1.93%) and communication services (-1.93%) lagged. The session reflected investor caution ahead of Trump's potential Iran military escalation and uncertainty over AI spending returns.

Hot Stocks

Tech Giants:

• Microsoft (MSFT): -9.99%
• Meta (META): +10.40%
• Tesla (TSLA): -3.45%
• Apple (AAPL): +0.72%
• Alphabet (GOOG): +0.71%
• Nvidia (NVDA): +0.52%

Wildcards:

• TechCreate (TCGL): +889.23%
• Republic Power (RPGL): +173.86%
• Adlai (ANL): +88.18%
• Linkers Industries (LNKS): +71.50%
• ENvue Medical (FEED): +66.96%

Losers:

• Hubspot (HUBS): -11.22%
• IonQ (IONQ): -5.59%
• Digital Currency X (DCX): +34.31%

Analysts Opinions

Analysts highlighted Microsoft's earnings-driven selloff as a key drag, with its 10% drop marking the second-largest single-session loss in history. The tech selloff underscored investor skepticism about AI ROI, as Meta's 10% surge failed to offset broader concerns. Trump's Iran warnings and the Fed's rate-hold decision added volatility, with markets pricing in two rate cuts by year-end. Energy analysts praised the sector's resilience amid geopolitical tensions, while AI sector observers noted Meta's $135 billion data center investment as a potential differentiator.

Macro & Corporate Narratives

1. Microsoft's $357B Rout: AI Spending Skepticism

Microsoft's 10% plunge, its worst single-day drop since 2020, reflected investor doubts about AI infrastructure ROI. The company's $37.5B capital expenditure surge and slower cloud growth spooked markets, despite Meta's bullish $135B data center commitment.

2. Trump's Iran Ultimatum Spikes Oil & Gold

President Trump's warning to strike Iran if it rejects a nuclear deal pushed WTI crude to a four-month high (+3.47%) and gold to $5,407.30 (+1.26%), as investors sought safe havens amid escalating tensions.

3. Fed Holds Rates, Markets Price Two Cuts by Year-End

The Fed's decision to maintain rates at 3.5%-3.75% disappointed hawkish investors, who now expect two 25-basis-point cuts by December 2026. The central bank's delayed easing path, however, kept pressure on the dollar, which hit a four-year low.

4. Apple's $2B AI Acquisition: Q.ai's Audio Tech

Apple's purchase of Israeli AI startup Q.ai for $2B signaled intensified competition in AI hardware. The acquisition, its second-largest after Beats, aims to enhance AirPods and Vision Pro with advanced audio processing capabilities.

5. Tesla's Robot Bet: Model S/X Discontinuation

Elon Musk announced Tesla will discontinue the Model S/X to repurpose Fremont factory space for Optimus robot production. The $20B 2026 capex plan, tied to a $1T pay package, marks a strategic pivot toward robotics amid slowing EV sales.

6. Meta's AI-Driven Ad Revenue Surge

Meta's 24% Q4 ad revenue growth and 33.5% Q1 guidance outperformed peers, validating its AI investments. The stock's 10% rally made it the only "Magnificent 7" stock to gain ground, contrasting with Microsoft's selloff.