Wall Street Falls for the Week but Ends January with Strong Gains

This Friday, Wall Street’s major indices declined after the United States confirmed it will impose tariffs on its largest trading partners starting this Saturday, alongside economic data supporting expectations of stable interest rates.

The Dow Jones Industrial Average, comprising 30 blue-chip stocks, fell 0.75% to 44,544.66 points. The S&P 500, which tracks 500 companies, dropped 0.50% to 6,040.53 points, while the tech-heavy Nasdaq Composite decreased by 0.28% to 19,627.44 points.

SPX

U.S. stocks pulled back at the close after the White House confirmed that President Donald Trump will enforce a 25% tariff on Canadian and Mexican imports and a 10% tariff on Chinese goods starting Saturday.

Investors have been bracing for further tariff announcements following Trump’s repeated warnings. Uncertainty over the impact of these tariffs has weighed on economic and inflation forecasts.

Macro Data and Monthly Performance

On the economic front, the Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—rose 0.3% month-over-month in December, aligning with expectations and reinforcing the outlook for unchanged interest rates. “It makes sense that the Fed took no action this week, and it’s also sensible that [Fed Chair] Jerome Powell mentioned there’s no rush to cut rates,” analysts noted.

Among key stocks, Apple shares were volatile, dipping 0.67%. Despite this, the company expressed optimism in Thursday’s earnings call, projecting a recovery from declining iPhone sales thanks to new AI features.

For the week, the Dow Jones edged up 0.27%, while the S&P 500 lost 1%, and the Nasdaq fell 1.64%. On a monthly basis, January brought solid gains, with the Dow rising 4.7%, the S&P 500 up 2.70%, and the Nasdaq increasing by 1.64%.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.