U.S. stocks finished Friday’s session mixed, capping a volatile week as a sharp sell-off in Intel weighed on markets even as broader investor anxiety eased following days of tariff-related uncertainty.
The S&P 500 hovered near flat territory through the day, positioning the index for a second consecutive week of modest losses. The Dow Jones Industrial Average fell about 0.5%, dragged lower by weakness in several blue-chip stocks, while the Nasdaq Composite edged higher, supported by gains in select technology names.
Intel slump offsets broader stability
Intel was a major drag on the market, plunging more than 15% despite posting stronger-than-expected results for the final quarter of 2025. Investors focused instead on the chipmaker’s outlook for the first quarter of 2026, which came in below Wall Street expectations.
Executives pointed to ongoing supply constraints affecting the semiconductor industry. Intel said conditions are expected to worsen slightly in early 2026 before improving later in the spring. Chief Executive Lip-Bu Tan emphasized long-term growth opportunities tied to artificial intelligence, but that reassurance did little to calm near-term concerns.
Market jitters ease after tariff reversal
Bond and currency markets were relatively calm compared with earlier in the week, when President Donald Trump’s threat to impose tariffs on several European countries rattled global investors. Those concerns triggered a brief sell-off in U.S. Treasurys and the dollar.
Markets stabilized after Trump backed away from the tariff plan, saying he had reached a framework for a future agreement related to Greenland. While details remain scarce, the reversal helped ease pressure on U.S. assets.
Even so, gold prices continued to climb, moving closer to $5,000 per ounce, a sign that many investors remain cautious and are seeking traditional safe havens.
Corporate movers: winners and losers
Capital One Financial shares fell more than 4% after the bank reported weaker-than-expected profits and announced it would acquire corporate card provider Brex for $5.15 billion in a mix of cash and stock.
On the upside, oilfield services firm SLB rose nearly 2% after reporting stronger quarterly profits and announcing a dividend increase. The company said revenue improved across all major regions for the first time in nearly two years.
Railroad operator CSX gained almost 4% despite missing earnings expectations, as investors responded positively to its outlook for improved operating efficiency in 2026.
Economic data offers modest support
In the bond market, Treasury yields edged lower, with the 10-year yield slipping to about 4.24%. A University of Michigan survey showed U.S. consumers’ inflation expectations for the coming year fell to 4%, the lowest reading in a year. While still above the Federal Reserve’s 2% target, the improvement eased fears of a self-reinforcing inflation cycle.
Consumer sentiment also came in slightly stronger than expected, suggesting household spending—the backbone of the U.S. economy—remains resilient. Separate data from S&P Global indicated continued expansion in U.S. business activity.
Global markets mixed
Overseas, European stocks slipped modestly, while Asian markets were mostly higher. Japan’s Nikkei 225 rose after the Bank of Japan left interest rates unchanged, following a recent hike in December. Concerns earlier in the week over Japan’s government debt eased, helping stabilize global bond markets.
As Wall Street heads into the final trading days of January, investors remain cautious, balancing corporate earnings, economic data, and lingering geopolitical uncertainty.
