Wall Street’s main indexes closed lower on Friday as investors stepped back to digest a mixed bag of economic data and earnings reports. The technology sector was the biggest drag, with megacap stocks reversing a sharp rally earlier in the week.
Housing market data was hotter than expected, but an S&P Global survey showed business activity slowing to a nine-month low in January due to rising prices. However, firms reported increased hiring, supporting the Federal Reserve’s cautious approach to monetary policy this year.
Investors are preparing for a busy week ahead, with a slew of key inflation and economic growth data as well as the Federal Reserve meeting scheduled for next week. They are also waiting for policy updates from the Trump administration, including details on proposed tariffs.
The S&P 500 fell 140.82 points, or 0.32%, to 44,424.25, while the Nasdaq lost 99.38 points, or 0.50%, to 19,954.30. The Dow declined 17.47 points, or 0.29%, to 6,101.24.
Despite the losses, six of the 11 S&P 500 industry sectors rose, led by communications services and utilities. However, technology was the weakest sector, with Nvidia leading the declines.
In other earnings news, American Express reported a 12% jump in fourth-quarter profit, but its shares fell 1.4%. Boeing lost 1.4% after warning of a fourth-quarter loss, while Verizon rose 0.9% after reporting higher-than-expected quarterly subscriber additions.