U.S. stock market pauses with S&P 500 down 0.3% and Nasdaq 100 down 0.6%

From Nasdaq: 2025-01-24 16:20:38

The U.S. stock market rally paused on Friday, with the S&P 500 slipping 0.3% and Nasdaq 100 losing 0.6%. Mixed economic data and disappointing earnings reports from chipmakers like Texas Instruments contributed to the decline. The dollar saw its largest weekly drop since November 2023, and Treasury yields fell as traders bet on a Fed pause next week.

President Trump’s comments at Davos, calling for lower oil prices and interest rates, injected uncertainty into the market. Softened rhetoric on China tariffs earlier in the week boosted sentiment, but lack of policy details left investors cautious. Data showing a drop in consumer sentiment and slowing business activity added to the mood.

Wall Street’s main indexes fell on Friday due to mixed economic data. Chipmakers, led by Texas Instruments, dragged down the tech sector. The dollar’s largest weekly decline since late 2023 was recorded. President Trump’s calls for lower oil prices and interest rates, coupled with falling consumer sentiment and expected Fed rate cuts, are shaping market sentiment.

The U.S. stock market remains resilient near all-time highs, with the Dow Jones rising 0.4% and the S&P 500 staying flat despite Friday’s pullback. Expectations of a Fed pause at next week’s meeting provide stability. Corporate earnings show mixed but encouraging results, supporting bullish sentiment.

Corporate earnings were mixed, with American Express reporting a 12% profit jump while Boeing warned of a $4 billion quarterly loss. Verizon exceeded subscriber growth estimates, but Texas Instruments’ weak forecast highlighted market challenges. Investors are monitoring potential Trump-era tariffs and deregulation for impact on inflation and monetary policy. Analysts remain cautiously optimistic about equities amid high market volatility.



Read more at Nasdaq: Quiver’s Friday Markets Close Stock Research