The U.S. equities market experienced subdued activity on Friday, closing out a week characterized by volatility and sharp directional shifts. By mid-afternoon Eastern Time, the S&P 500 index hovered around unchanged levels, positioning itself to conclude the week slightly lower for the second consecutive period. In contrast, the Dow Jones Industrial Average registered a decline of 365 points, or approximately 0.7%, while the Nasdaq Composite edged upward by 0.3%.
The downward pressure on the broader market largely stemmed from a significant 17.6% tumble in Intel Corporation's stock. Despite delivering better-than-anticipated results for the year-end period of 2025, investor focus shifted sharply to the company’s first quarter forecast, which fell short of Wall Street's estimates. Intel’s Chief Financial Officer, David Zinsner, indicated ongoing supply shortages are affecting the semiconductor sector broadly, with supply constraints expected to hit their lowest point early this year before improving in the spring and thereafter. Meanwhile, Intel CEO Lip-Bu Tan underscored the opportunities emerging from advancements tied to artificial intelligence, suggesting strategic benefits on the horizon despite near-term challenges.
Movements in the U.S. bond and foreign exchange markets were relatively moderate, following notable volatility earlier in the week. Earlier fluctuations were influenced by geopolitical developments, notably President Donald Trump's threat to impose 10% tariffs on European nations resisting his Greenland acquisition initiative. This announcement initially triggered a sell-off in U.S. Treasury securities, lifting yields, and depreciated the dollar against other currencies. However, market tension eased somewhat after Trump announced on Wednesday a framework for future talks regarding Greenland, and suspended the planned tariffs, although comprehensive details remain scarce.
Reflecting a consistent search for safer assets amidst uncertainty, gold prices ascended further on Friday, approaching an all-time high near $5,000 per ounce. This represents an increase of nearly 15% year-to-date, highlighting sustained investor preference for traditionally secure investments amid geopolitical and economic unpredictability.
In other equities news, Capital One Financial Corporation experienced a 6.8% decline after reporting weaker-than-expected fourth-quarter earnings for 2025. However, the company revealed its agreement to acquire Brex, a corporate card issuer geared toward business customers, in a transaction valued at $5.15 billion in cash and stock. Meanwhile, oilfield services provider SLB reversed an earlier gain to finish largely unchanged despite posting stronger quarterly profits than anticipated and announcing a 3.5% dividend increase. CEO Olivier Le Peuch attributed improved revenue performance across all four geographical regions compared to the prior quarter—a first since spring 2024. The railroad operator CSX saw its shares rise 4.2%, even though its profits undershot estimates, buoyed by optimistic forward-looking statements regarding operating profit margins. Consumer goods company Clorox shares benefited from a 1.7% gain following its announcement to acquire GOJO Industries, the maker of Purell, for $2.25 billion in cash.
Turning to fixed income, Treasury yields displayed a mixed picture amid data pointing to an enhancement in U.S. consumer inflation expectations. The University of Michigan’s survey reported expected inflation over the coming year at 4%, still significantly above the Federal Reserve’s 2% target but marking the lowest level in a year. This improvement could help avert the undesirable inflation expectations spiral that the Fed aims to prevent. Consumer sentiment was slightly stronger than forecasted, which suggests ongoing consumer spending strength, a key driver of the U.S. economy. Additionally, preliminary S&P Global data signaled continued expansion in U.S. business activity. The 10-year Treasury yield edged down slightly to 4.25% from 4.26% the previous day.
Internationally, stock indices were predominantly lower in Europe after earlier gains across parts of Asia. Japan’s Nikkei 225 index inched up 0.3% following the Bank of Japan's decision to maintain its key interest rate, a move largely anticipated by the market. This follows the central bank’s gradual increase of its policy rate to 0.75% in December from a negative territory. Global financial markets showed signs of stabilization after early-week surges in long-term Japanese government bond yields, which had been influenced by concerns over fiscal policy stances of Japan’s Prime Minister Sanae Takaichi and implications for an already substantial national debt.