Highlights
Stocks ended flat to narrowly mixed Friday with the major indexes holding onto decent gains to end a turbulent week. The Dow Jones industrial average eased 0.6 percent, the S&P 500 was flat and the Nasdaq firmed 0.3 percent. US Treasury yields were flat to lower while oil prices rose and the dollar dropped.
Investors were still digesting the remarkable turn of events on Wednesday with President Trump appearing to back down on his threats to invade Greenland invasion and to levy punitive tariffs on NATO allies who resisted his plan. Another batch of somewhat upbeat economic indicators on Friday, including better than expected consumer sentiment and purchasing managers data for January. The data bolstered risk appetite by suggesting the economy remains rather more resilient than markets expected.
Megacaps and big technology generally underpinned the market on Friday even as the breadth of strength evident on Wednesday and Thursday faded out headed into the weekend. Small and mid-cap stocks that rallied earlier pulled back Friday.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.