Squawk on the Street S&P 500 Hits 7,000, AI Trade-Chips Rally, Fed Decision Day 1/28/26
Jan 28, 2026
Markets hit a major S&P milestone as AI-driven chip optimism lifts semiconductors and big tech. Data center demand and storage needs spike alongside a potential massive OpenAI funding round. Fed rate decision and dollar movement frame the macro outlook. Major corporate moves include Amazon job cuts and Starbucks’ retail rebound.
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Data-Center Demand Is Fueling A Chip Rally
- The AI/data-center surge is driving a broad semiconductor and storage rally across companies like ASML, Seagate, and Texas Instruments.
- Jim Cramer says demand exploded because new NVIDIA platforms generate far more data, forcing orders for storage and fab equipment.
AI Fundraising Amplifies Data-Center Demand
- Massive capital is flowing into AI firms, padding balance sheets and accelerating enterprise AI adoption even if they don't build data centers themselves.
- Cramer and David Faber note Anthropic/OpenAI revenue growth and large investments are funneling demand into the data center ecosystem.
Buy Into Proven Order Flow
- When a stock soars on a thematic shift, avoid assuming it's fully priced; consider buying names that still show order flow and demand.
- Jim Cramer recommends buying GLW and others after they saw renewed orders tied to the AI hardware cycle.