Wall Street’s main stock indexes went down on Friday as investors took a moment to think about new economic data and company earnings. The big problem was the technology sector, especially big names like Nvidia, which had a quick drop after a big rise earlier in the week.
Some housing market data was higher than expected, showing more people are buying homes. However, a survey showed that business activity slowed to its lowest point in nine months, even though companies are hiring more workers. This might help the Federal Reserve decide carefully on how to manage interest rates this year.
Consumer mood dropped from 73.2 to 71.1, indicating people are less optimistic. Investors are expecting the Federal Reserve to keep interest rates the same at their meeting on January 28-29, with hopes of cutting rates by June.
Scott Helfstein, an investment expert, said the mixed economic news has investors preparing for a busy week ahead with important data and the Fed meeting coming up. There’s also uncertainty about President Trump’s new policies, as he mentioned tariffs on other countries without sharing clear details.
The Dow Jones dropped 140.82 points, sitting at 44,424.25. The S&P 500 lost 17.47 points to 6,101.24, and the Nasdaq dropped 99.38 points to 19,954.30. Even with these losses, the S&P 500 went up 1.74% for the week, and the Nasdaq and Dow also gained.
Six sectors in the S&P 500 gained, with communications performing the best. NextEra Energy was the biggest winner, rising 5.2%. Technology stocks were the weakest, particularly Texas Instruments, which fell 7.2% due to lower profit forecasts. Nvidia dropped 3.1%, along with Microsoft and Tesla, which both saw small losses.
American Express did well, reporting a big profit increase, but its shares still dropped. Boeing’s shares fell after it announced a possible $4 billion loss; they will report results on Tuesday.
On a positive note, Verizon’s shares rose after it reported better-than-expected subscriber growth. More stocks went up than down on the NYSE, and many stocks hit new highs
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