Stocks fell on Friday after reaching new highs, with tech stocks hit hard

From Nasdaq: 2025-01-27 09:41:00

U.S. stocks closed lower on Friday after reaching new highs earlier in the week, with the Dow Jones Industrial Average falling 0.3% and the S&P 500 declining by 0.3%. The tech-heavy Nasdaq also dropped 0.5%. Tech stocks were hit the hardest, with NVIDIA, Amazon, and Apple all seeing declines. Investors await the Federal Reserve’s upcoming policy meeting for further guidance on future rate paths.

Despite the Friday decline, all three major indexes ended the week higher, with the Dow up 2.2% and the S&P 500 and Nasdaq each gaining 1.7%. Housing market data showed a 2.2% increase in existing home sales in December, while the University of Michigan’s Consumer Sentiment Index dropped to 71.1 in January. The fourth-quarter earnings season has begun, with investors eager for updates from industry leaders.

Investors were relieved by Trump’s return to the White House, with optimism around his pro-business policies boosting stocks. The threat of higher tariffs on certain countries raised concerns, but no action has been taken yet. Tech stocks were the most impacted, with mega-caps like NVIDIA, Amazon, and Apple experiencing declines. The Federal Reserve’s policy meeting and earnings reports will be closely watched in the coming week.



Read more at Nasdaq: Stock Market News for Jan 27, 2025