The S&P 500 closed lower on Friday, after setting new intraday records earlier in session. Investors took profits following a successful week.
Despite the pullback in the market, the major US indexes recorded their second consecutive week of gains, signaling renewed confidence in the markets.
The S&P 500 benchmark fell 0.3% to 6,101.24 while the Nasdaq Composite dropped 0.5% to 19,954.30.
The Dow Jones Industrial Average lost 140.82 points or 0.3% to finish at 44.424.25. The Dow Jones Industrial Average lost 140.82 points, or 0.3%, to finish at 44,424.25.
The recent highs of the market were largely due to megacap technology stocks. Nvidia fell over 3% and Tesla dropped more than 1%. Both contributed to the session’s drop.
Weekly gains despite profit-taking
The Dow gained 2.2%, while the S&P 500 rose 1.7%.
Investors were fueled by the pro-business policies of President Donald Trump, and his restrained tariff policy during his first days in office.
Investors prepare for a busy next week
Trump told world leaders in Davos (Switzerland) on Thursday that he would seek immediate interest rate reductions and lower oil prices from OPEC countries, adding yet another layer of intrigue for the market.
Earnings reports and corporate developments were the main focus, despite the politics.
Novo Nordisk’s stock rose over 8% following promising early-stage trials of its weight-loss medication.
Texas Instruments also fell by more than 7% after a weak earnings forecast.
Investors are preparing for a busy, eventful week. The Federal Reserve meeting and major technology earnings will be on the radar.
According to CME’s FedWatch Tool there is a 98% probability that the Fed will keep interest rates unchanged.
As traders assess the sustainability and longevity of the current bull, the market’s trajectory is likely to be determined by upcoming earnings for key tech companies and the Fed’s outlook regarding monetary policy.
Thursday marked the first time since early December that the S&P 500 had reached a new closing high.
The rally was held after President Donald Trump advocated for lower taxes, oil prices and interest rates during his first major international address of his term at the World Economic Forum, Davos, Switzerland.
The technology stocks that had been the strongest performers in the market during the week, reversed their course on Friday, and became the weakest performing sector.
Texas Instruments shares fell 7.2% after the chipmaker forecast a first-quarter loss below analysts’ expectations, citing a buildup of inventory in its key automotive markets and industrial markets.
Nvidia, which dropped 3.1% on the S&P 500 index, was the biggest drag, while other tech giants like Microsoft and Tesla fell 0.6% and 1.4% respectively.
American Express, in other sectors, reported a 12% increase in its fourth-quarter profits, but its stock fell by 1.4%, weighing down the Dow Jones Industrial Average.
Boeing also dragged down the Dow, losing 1,4% after announcing a $4 billion loss for its upcoming quarter results, due on Tuesday.
This post S&P500 slips from intraday lows as investors lock profits after a good week may be updated as new information becomes available
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