The stock market slid on Friday, with the S&P 500, Nasdaq, and Dow Jones closing lower to end an otherwise solid week. Investors took profits from recent gains, causing the benchmark index to shed 0.3% to 6,101.24 after hitting an intraday record earlier. The Nasdaq dropped 0.5% to 19,954.30, and the Dow declined by 140.82 points or 0.3%, closing at 44,424.25.
Despite Friday’s losses, all three major indexes posted back-to-back weekly gains, signaling a bullish market resumption after December’s downturn. Investors were primarily focused on President Trump’s return to the White House and his pro-business policies, which have bolstered risk asset values throughout the week. On Thursday, Trump announced at the Davos World Economic Forum that he would “demand interest rates drop immediately” and request oil price adjustments from OPEC, which captured significant market attention.
Some megacap tech stocks that drove the indexes to record highs earlier in the session experienced pullbacks.
Stock market ends solid week
Apple dropped more than 3%, and Microsoft saw a decline exceeding 1%.
Beyond politics, traders monitored corporate news and earnings reports closely. Texas Instruments faced its worst trading day since March 2020, falling over 7% after issuing disappointing earnings guidance for the current quarter, citing weaker auto markets in Europe, Japan, and the U.S. Palantir, on the other hand, extended its winning streak, gaining more than 2% and setting a pace to match its record eight-day rally since it went public in 2020. Intuitive Surgical’s stocks also fell by 4%, their worst daily performance in over a year, following a lower-than-expected profit margin forecast for 2025.
Despite this, analysts from Stifel, Wells Fargo, and Citi raised their price targets on the medical equipment company’s stock. Gold prices rose by 1% to $2,781.66 per ounce, nearing the record high it reached in late October. Investors will continue to watch for major corporate earnings next week and monitor the Federal Reserve’s policy meeting, where futures pricing suggests the central bank will likely keep interest rates unchanged.
