Major U.S. stock indexes slipped to end their four-session winning streak, but they still managed to post their second straight weekly gain after President Donald Trump softened the tone on tariffs and called for lower interest rates and cheaper oil in his first week in office. in its first week in its first week in its first week in its first week in its first week in its first week in its first week in its first week White House.
On February 1, Trump proposed 25% duties on Canada and Mexico, later than his previous push to trigger tariffs on the first day. He also mentioned tariffs only 10% on all Chinese importswhich would be significantly lower than He proposed 60% on the campaign trail.
“This has left investors feeling that his tariff plans are probably lower on the priority list, but may be far less aggressive than initially feared,” said Matthew Ryan, head of market strategy at global financial services firm Ebury.
Further gains in stocks, Trump told world leaders Gathered in Davos, Switzerland, on Thursday they will demand lower interest rates and ask Saudi Arabia and other oil-producing countries to reduce oil costs. Oil fell 0.09% to $74.55 a barrel.
The broader S&P 500 ended up 0.29%, or 17.47 points, at 6,101.24, below Thursday’s record of 6,118.71 and hitting an intraday record of 6,128.18 near the open. The Dow Blue Chip fell 0.32%, or 140.82 points, to 44,424.25, and the tech-heavy NASDAQ edged lower 0.5%, or 99.38 points, to 19,954.30. The benchmark 10-year Treasury yield fell to 4.617%.
Even though Trump said he would “Demand” for lower interest ratesThe Federal Reserve is in charge of monetary policy and generally operates independently within the government.
The Fed plans to meet next week and announce policy on Wednesday. After the sequence Powerful dataincluding a Report on blowing in Decemberalmost no one expects Fed at lower pricesaccording to CME’s Fedwatch tool It tracks what the market thinks are the odds of a rate hike.
The Fed’s short-term reference target of FED funds is 4.25% to 4.5%.
With tariffs on the back burner of investors’ minds for now, they can turn their attention to corporate news, especially earnings. Some of today’s daily company news includes:
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Verizon’s earnings in the final three months of last year beat analysts’ expectations. The wireless provider also posted its best postpaid subscriber growth in five years, surprising analysts. Shares closed down almost 1%.
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Novo Nordisk shares rallied around 8.5% on positive early-stage results for its once-weekly obesity drug amycretin.
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Twilio issues stronger-than-expected earnings outlook, shares jump 20%
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Texas Instruments warned that its first-quarter profit will miss analysts’ forecasts as it struggles to build inventory in its key automotive and industrial markets. Shares ended down 7.5% for their worst day since March 2020.
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Shares of CSX fell nearly 3% after the trucking company said fourth-quarter results fell due to sharp declines in coal and fuel revenue.
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Intuitive Surgical stock fell 4.4% for its worst day since October 2023 after the company cut its gross profit margin outlook.
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Last night, Boeing warned of a bigger fourth-quarter loss due to a prolonged strike, Allegations related to US government projects and costs related to a series of job cuts. Shares shed 1.37%.
