January 20, 2026, 5:36 AM EST. Stocks closed slightly lower Friday with the S&P 500 down 0.06%, Dow off 0.17%, and Nasdaq 100 slipping 0.07%, pressured by climbing bond yields. The 10-year Treasury yield hit a 4.5-month peak at 4.23% following President Trump's hesitation to nominate dovish candidate Kevin Hassett for Fed Chair. Markets reacted to the possibility of a more hawkish Fed under Kevin Warsh, pushing yields up and dragging equities down. Strong chipmaker performance, backed by Taiwan Semiconductor's increased capital spending forecast, initially lifted stocks. Mixed economic data included rising December manufacturing output but a weaker-than-expected January housing market index. Early Q4 earnings beat expectations with 89% of S&P 500 companies surpassing estimates. Overseas markets also declined, reflecting global cautious sentiment ahead of the Federal Reserve's upcoming rate decision.