Global Market: Wall Street’s main indexes closed with losses on Friday. Investors appeared cautious given the mixed economic data and company results. Investors are also keeping an eye on the Federal Reserve meeting to be held next week. The most pressure was seen on technology stocks in the American market. Many megacap stocks including AI chip maker Nvidia took a beating. Housing market data was stronger than expected. Rising prices pushed business activity to a nine-month low in January, according to an S&P Global survey. However, companies have reported an increase in new recruitment. This indicates that this year the Federal Reserve may adopt a cautious approach in monetary policies. The University of Michigan’s final estimate on consumer sentiment stood at 71.1, down from the previous estimate of 73.2.
At the end of a relatively light data week, traders are assuming the Fed will keep rates unchanged at its Jan. 28-29 meeting and expect its first rate cut in June. The latest data from CME Group’s FedWatch tool is also giving similar indications.
Scott Helfstein of ETF company Global Apart from this, their eyes are also on the policy updates coming from the Trump administration. There is really big news to come in the coming week. There remains policy uncertainty before the new administration takes office. “This is likely to persist for the next few weeks.”
There is concern among investors that US President Donald Trump’s proposed tariffs could increase inflationary pressure and slow down the Fed’s interest rate cuts. Although Trump has mentioned trade policy several times this week, he has not given concrete details of his plans.
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Trump has said that tariffs on Mexico, Canada, China and the European Union could be announced on February 1. But analysts say major plans could be announced on April 1.
On Friday, the Dow Jones Industrial Average fell 140.82 points, or 0.32 percent, to 44,424.25. The S&P 500 index fell 17.47 points, or 0.29 percent, to 6,101.24, and the Nasdaq Composite dropped 99.38 points, or 0.50 percent, to 19,954.30.
If seen on weekly basis, American indices showed growth for the second consecutive week. The S&P 500 gained 1.74 percent last week, while the Nasdaq gained 1.65 percent and the Dow gained 2.15 percent.
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