Wall Street's major indexes retreated on Friday as investors digested a mixed bag of economic data and earnings reports and prepared for a week filled with economic releases and a Federal Reserve meeting. It has decreased.
The Dow Jones Industrial Average decreased 140.82 points, or 0.3%, to 44,424.25. The Blue-chip index still ended the week over 2%.
The S&P 500 and NASDAQ were down 0.3% and 0.5%, respectively. All three indexes made progress for the second consecutive week.
This technology sector was the biggest drag on the market as Megacap stocks, including Nvidia, reversed after Nvidia reversed earlier in the week.
Housing market data came in higher than expected, but S&P Global Research found business activity slowed to a nine-month low in January as prices rose. But businesses reported job gains, supporting the Federal Reserve's cautious approach to monetary policy this year.
The University of Michigan's final estimate for consumer sentiment fell to 71.1 from the previous estimate of 73.2.
At the end of a relatively light week of data, traders were betting that they expected the Fed to change borrowing costs at its Jan. 28-29 meeting and cut the initial rate in June.
Scott Helfstein, Head of Investment Strategy at ETF Company Global
Investors are bracing for key inflation and economic growth data next week, as well as the Fed meeting, while awaiting policy updates from the Trump administration.
“Big news is expected ahead of the week, and there is lingering policy uncertainty in the new administration's first week of work, which is likely to persist for weeks to come,” he said. Said.
Investors believe President Trump's proposed tariffs could worsen inflationary pressures and slow Fed rate cuts after he mentioned trade policy multiple times this week without providing specific details of his plans. I'm worried about that.
Trump has said he could announce tariffs for Mexico, Canada, China and the European Union on February 1st, while analysts say he could announce major plans on April 1st.
The benchmark S&P 500 ended Thursday at a record high for the first time since early December after President Trump called for lower taxes, oil prices and interest rates this term at the World Economic Forum in Switzerland.
On the revenue front, American Express reported a 12% jump in fourth-quarter profits. However, its shares fell 1.4%, weighing down the blue-chip Dow.
Also dragging the Dow was Boeing, which fell 1.4% after the planemaker maker warned of a fourth-quarter loss of about $4 billion. Boeing, whose 2024 stock posted its steepest annual decline since the pandemic, is scheduled to report results on Tuesday.
Verizon rose 1% after the mobile phone service provider reported higher-than-expected quarterly subscriber additions.
