The stock market closed slightly lower on Friday, with the S&P 500 Index, Dow Jones Industrials Index, and Nasdaq 100 Index all posting modest declines. Bond yields rose, with the 10-year T-note yield reaching a 4.5-month high of 4.23%, following President Trump’s comments about the Fed Chair nomination.
Stocks initially rose on Friday, driven by strength in chipmakers. Taiwan Semiconductor Manufacturing Co’s increased capital expenditure forecast boosted confidence in the sector, particularly in artificial intelligence-related companies.
In economic news, December manufacturing production unexpectedly rose by 0.2% month-over-month, surpassing expectations of a decline. However, the January NAHB housing market index fell by 2 points to 37, lower than anticipated.
The ongoing Q4 earnings season has been positive for stocks, with a significant number of S&P 500 companies beating expectations. Earnings growth is expected to climb by 8.4% in Q4, excluding the top technology stocks.
The Supreme Court did not rule on challenges to President Trump’s tariffs, leaving uncertainty in the market. The odds of a rate cut at the FOMC’s next meeting are currently discounted at 5%.
Overseas markets closed lower on Friday, with the Euro Stoxx 50, Shanghai Composite, and Nikkei Stock 225 all posting declines. In the interest rates market, T-notes fell as inflation expectations rose and President Trump’s comments impacted prices.
In stock movers, chipmakers and data storage companies saw gains, while power supplies faced pressure. Notable gainers included Super Micro Computer, Micron Technology, and Applied Materials, while losers included Talen Energy and Constellation Energy.
In the earnings reports for January 20, 2026, companies such as 3M Co, DR Horton Inc, Fastenal Co, and Netflix Inc are expected to release their financial results. This information is for informational purposes only and was originally published on Barchart.com.
