US stocks closed lower on Friday as investors digested mixed economic data and earnings reports ahead of a crucial week featuring a FED policy meeting and major inflation releases.
The Dow Jones fell 0.32%, the S&P 500 slipped 0.29%, and the Nasdaq dropped 0.50%, with technology stocks leading the decline after a strong rally earlier in the week.
Markets were pressured by signs of slowing economic momentum. An S&P Global survey showed US business activity fell to a nine month low in January, while consumer sentiment weakened, with the University of Michigan index dropping to 71.1. Housing data came in stronger than expected, and hiring remained steady, reinforcing the Fed’s cautious stance on interest rates.
Traders are now widely betting the Fed will hold rates steady at its January 28 to 29 meeting, with the first rate cut expected in June, according to CME FedWatch data.
Technology shares dragged the market lower, with Nvidia falling 3.1%, Tesla down 1.4%, and Microsoft slipping 0.6%. Texas Instruments tumbled more than 7% after warning of weak first quarter profits due to inventory pressures.
Among major movers, Boeing dropped 1.4% after warning of a wider fourth quarter loss, while American Express slid 1.4% despite posting a 12% jump in quarterly profit. Verizon rose 0.9% after reporting stronger than expected subscriber growth, and NextEra Energy surged over 5%, leading gains in utilities.
Despite Friday’s losses, all three major indexes finished the week higher, with the Dow up 2.15%, the S&P 500 gaining 1.74%, and the Nasdaq rising 1.65%.
Investors are now focused on next week’s inflation data, earnings from major companies, and policy signals from the Fed, while also watching closely for updates on President Trump’s proposed tariffs, which could influence inflation and the timing of future rate cuts.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
What to Watch This Week in Markets: Fed Day, Big Tech “Show Me” Earnings
