US Stocks Mostly Edge Higher as Tariff Tensions Linger
US stocks closed mostly higher on Friday, with the S&P 500 eyeing a fresh record to cap a busy week marked by tariff hikes, inflation updates, and disappointing retail sales data.
The S&P 500 (^GSPC) gained 0.1% and was on track for a record close, while the Nasdaq Composite (^IXIC) rose 0.3%. However, the Dow Jones Industrial Average (^DJI) dipped below the flatline, erasing Thursday's sharp gains.
Retail sales posted their largest monthly decline in a year, falling 0.9% in January, well below the expected 0.9% increase. This report capped a week of key economic data, with inflation top of mind after two hot readings weighed on hopes for interest rate cuts.
Markets paused amid a flurry of policy shifts from President Donald Trump this week, ranging from 25% tariffs on steel and aluminum to Ukraine peace talks with Russia and a review of CHIPS Act funding terms.
Stocks remain on track for solid weekly gains, having surged on Thursday after Wall Street welcomed a delay in implementing reciprocal tariffs. Notable stock movers:
* Airbnb (ABNB) shares jumped after the travel company beat analyst expectations.
* GameStop (GME) shares surged amid speculation the retailer may invest in bitcoin.
* Moderna (MRNA) reported a wider-than-expected earnings loss, sending shares of the vaccine maker lower.
Intel Rallies on AI Chip Pledge
Intel (INTC) is set to notch its largest weekly gain since 2000, fueled by Vice President JD Vance's bullish comments on domestic AI chip production and investor speculation over a joint venture with Taiwan Semiconductor Manufacturing Company (TSMC).
Trump's Reciprocal Tariffs
President Trump has shifted focus from universal tariffs to a reciprocal-first approach, which he believes is "the only fair way to do it." A new presidential memorandum will launch studies of unfair trade situations and initiate negotiations with nations impacted by the tariffs.
Trump Plans to Overhaul CFPB
The Trump administration is aiming to slash the Consumer Financial Protection Bureau (CFPB) staff by 95% and cancel its headquarters lease as part of an effort to hollow out the agency.
Oil Swings on Tariff Threats and Supply Concerns
Oil prices initially gained on supply concerns but pared gains as traders weighed the impact of retaliatory US tariffs.
Nvidia's Portfolio Moves
Nvidia (NVDA) revealed changes in its equity portfolio, leading to wild swings for several companies. WeRide (WRD) and Nebius Group (NBIS) saw their stocks surge, while Serve Robotics (SERV) plunged after Nvidia sold its stake.
Airbnb Surges on Amazon-Like Ambitions
Airbnb (ABNB) shares surged after the company reported upbeat quarterly results and plans to expand into a comprehensive platform for travel and living needs.
Retail Sales Fall
Retail sales declined more than expected in January, marking the largest month-over-month drop since January 2024.
Tesla's Sharp Decline
Tesla (TSLA) has lost a quarter of its value in less than two months, wiping out $400 billion. Wall Street remains cautious despite some investors seeing it as a buying opportunity.
CHIPS Act Renegotiations
The Trump administration is rumored to be reviewing CHIPS Act awards, potentially delaying funding handouts for projects with significant manufacturing facilities in China.
Coinbase Earnings
Coinbase (COIN) reported better-than-expected earnings but its mixed guidance for the first quarter led to a muted stock reaction. Analysts suggest the market may be overlooking the company's conservative guidance.
China's Outreach to Entrepreneurs
Beijing has invited Jack Ma of Alibaba (BABA) and other entrepreneurs to meet top Chinese leaders, signaling a shift from the recent crackdown on billionaires and the private sector.