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S&P 500 Ekes Out Intraday Record Before Ending With Dow, Nasdaq on Mixed Company News

Major US Stock Indexes slipped to snap their four-session winning streak, but they still managed to post their second straight weekly gain after President Donald Trump softened his tone on rates, calling for lower interest rates and cheaper oil in his first week back in the White House.

Trump suggested 25% tariffs on Canada and Mexico on February 1, which is later than his previous promise to start tariffs on his first day. He also mentioned tariffs as low as 10% on all Chinese imports, which would be significantly lower than the 60% he proposed on the campaign trail.

“This has left investors feeling that not only are its pricing plans likely to be lower on the priority list, but they may end up being much less aggressive than initially feared,” said Matthew Ryan, head of market strategy at global financial services firm Ebury.

Further stock gains, Trump told world leaders gathered in Davos, Switzerland on Thursday that he would demand lower interest rates and ask Saudi Arabia and other oil-producing countries to cut oil costs. Oil fell 0.09% to $74.55 a barrel.

The broader S&P 500 finished up 0.29%, or 17.47 points, to 6,101.24, below Thursday’s record close of 6,118.71 and intraday record high of 6,128.18 reached near the open. The blue-chip Dow fell 0.32%, or 140.82 points, to 44,424.25, and the tech-heavy Nasdaq lower 0.5%, or 99.38 points, to 19,954.30. The benchmark 10-year Treasury yield fell to 4.617%.

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Achi (the dog from the famous Dogwifhat meme) is seen at the opening bell of the New York Stock Exchange in New York, on January 23, 2025. Dogwifhat (WIF) is a Solana-based dog theme that launched in November 2023. It has a shiba-inu wearing a knitted hat as its mascot. (Photo by Timothy A. Clary/AFP) (Photo by Timothy A. Clary/AFP via Getty images)

Although Trump said he would “demand” lower interest rates, the Federal Reserve is responsible for monetary policy and generally works independently within the government.

The Fed is scheduled to meet next week and make a policy announcement on Wednesday. After a string of strong data, including a Blowout December jobs report, almost no one expects the Fed to cut rates, according to the CME’s FedWatch tool that tracks what the market thinks is the likelihood of a rate move.

The target for the Fed’s short-term funds is 4.25% to 4.5%.

With rates on the back burner of investors’ minds for now, they can turn their attention back to company news, especially earnings. Some of the day’s top business news includes:

  • Verizon’s revenue in the final three months of last year beat analyst expectations. The wireless carrier also saw its best postpaid phone subscriber growth in five years, surprising analysts. Shares closed down almost 1%.

  • Novo Nordisk shares rallied about 8.5% on positive early-stage results for its once-weekly amycretin obesity drug.

  • Twilio gave a stronger-than-expected earnings outlook and its shares are up 20%

  • Texas Instruments warned that its first-quarter profit would miss analysts’ forecasts as it battles inventory builds in its key automotive and industrial markets. Shares finished down 7.5% for the worst day since March 2020.

  • CSX shares fell nearly 3% after the trucking company said fourth-quarter results fell due to sharp declines in coal and fuel surcharge revenues.

  • Intuitive Surgical stocks fell 4.4% for the worst day since October 2023 after the company cut its gross profit margin outlook.

  • Last night, Boeing warned of a fourth-quarter loss due to a prolonged strike, allegations related to US government projects and costs related to a slew of job cuts. Shares have shed 1.37%.

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