Wall Street Retreats as Market Awaits Fed Announcement

After the S&P 500 closed at a record high, investors are now gearing up for next week’s earnings reports from major tech companies.

Wall Street’s three main indexes fell on Friday, as investors digested mixed economic data and corporate earnings while preparing for a crucial week of key indicators and reports.

The Dow Jones Industrial Average, composed of 30 major companies, declined 0.32% to 44,424.25 points, while the S&P 500 dropped 0.29% to 6,101.24 points. The tech-heavy Nasdaq Composite fell 0.50%, closing at 19,954.30 points.

SPX

Economic data released earlier in the day showed stronger-than-expected housing market figures, while an S&P Global survey revealed a slowdown in business activity, hitting a nine-month low in January due to rising prices.

With mixed signals and a more moderate trade stance from President Donald Trump, investors are bracing for the Federal Reserve’s monetary policy decision, with widespread expectations that interest rates will remain unchanged.

Earnings Reports Impact Stocks

In corporate earnings, American Express reported a 12% increase in fourth-quarter profits, slightly exceeding analysts’ estimates. However, its stock ended the day down 1.39%, weighing on the Dow Jones.

Boeing also dropped 1.37%, further dragging the Dow, after warning of approximately $4 billion in fourth-quarter losses. The struggling aircraft manufacturer is set to report earnings on Tuesday.

Despite Friday’s decline, the S&P 500 had hit a new all-time high on Thursday for the first time since early December. Whether it can maintain this momentum will largely depend on next week’s earnings reports from major tech companies.

For the week, all three major indexes posted gains of over 1%. The Dow Jones led the pack with a 2.15% increase, followed by the S&P 500 with a 1.74% rise, and the Nasdaq Composite advancing 1.65%.

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.