01-31-2026 | Markets react to Microsoft results, rising United States inflation pressure, a government shutdown, and China’s latest AI chip move.

COMPANIES. MICROSOFT SHARES DROP AFTER RESULTS. Microsoft shares fell after the company reported quarterly results showing slower cloud growth and record spending on artificial intelligence infrastructure. Capital expenditures reached tens of billions of dollars as the company expands data centers. Cloud revenue growth slowed compared with previous quarters, leading investors to reassess short term profitability despite strong long term demand for artificial intelligence services. THE ECONOMY. UNITED STATES PRODUCER PRICES ACCELERATE. Producer prices in the United States increased in the latest monthly reading. The Producer Price Index rose more than expected on higher services and goods costs. This is official data, not a market forecast, and signals renewed inflation pressure at the wholesale level ahead of upcoming consumer inflation and labor market releases. POLITICS. PARTIAL UNITED STATES GOVERNMENT SHUTDOWN BEGINS. A partial government shutdown began after Congress failed to pass a funding bill before the deadline. Dozens of federal agencies lost funding at midnight, while essential services continue operating. Lawmakers signaled a vote could happen within days to restore funding. INNOVATION. CHINA CLEARS NVIDIA CHIP PURCHASES. Chinese authorities conditionally approved purchases of Nvidia H two hundred artificial intelligence chips by domestic companies, allowing access to advanced processors used in large models and potentially reshaping global chip demand.