New York, January 23, 2026, 13:37 EST — Regular session
The Dow Jones Industrial Average dropped 411 points, or 0.8%, Friday afternoon, dragged lower by steep losses in Goldman Sachs and Caterpillar. American Express, JPMorgan Chase, and Walt Disney also pulled the blue-chip index down. 1
The Dow slipped, even as the S&P 500 and Nasdaq eked out small gains, buoyed by renewed interest in mega-cap tech. But Intel’s sharp drop and tariff worries kept traders on edge. “Some of these AI stocks have been inflated dramatically,” said Joe Saluzzi, partner and co-founder at Themis Trading, noting investors want “real plans” behind the hype. The Federal Reserve is widely expected to keep rates steady next week, with Apple, Tesla, and Microsoft—all part of the “Magnificent Seven”—set to report earnings. 2
Intel’s guidance hit the market hard. The chipmaker projected first-quarter revenue between $11.7 billion and $12.7 billion, with adjusted earnings expected to break even—both figures falling short of Wall Street’s forecasts. Executives flagged difficulties in keeping up with demand for server CPUs powering AI data centers. CEO Lip-Bu Tan admitted he was “disappointed” the company couldn’t fully satisfy the surge, while CFO David Zinsner said customers were “caught off guard” by how rapidly demand escalated. 3
U.S. consumer sentiment edged up in January but remained over 20% lower compared to last year, held back by concerns over high prices and a weaker labor market. Inflation expectations for the next year fell to 4.0%, marking their lowest point since January 2025. 4
A separate survey indicated U.S. business activity stayed steady earlier this month, despite firms facing persistent price pressures partly linked to tariffs. S&P Global’s “flash” PMI — an early snapshot from monthly business surveys — remained in expansion territory, with price gauges staying high. 5
Demand for safe-haven assets remained strong. Silver cracked the $100 an ounce mark, while gold hovered close to record highs. BNP Paribas strategist David Wilson warned that “profit taking” following the late-2025 rally is “likely sooner rather than later.” 6
Thursday brought a shift in sentiment. The Dow rose 306.78 points to close at 49,384.01 after President Donald Trump pulled back from tariff threats related to Greenland, fueling a bounce back from earlier losses in the week. “It’s very weird to wake up every day,” said Gregg Abella, CEO of Investment Partners Asset Management, likening the mood swings to “Christmas morning or Friday the 13th.” 7
Here’s a key detail for traders: the Dow is a price-weighted index. That means stocks with higher prices impact the average more than those with lower prices, no matter the company’s size. Its level gets calculated by a divisor, which gets tweaked to account for corporate moves like stock splits. 8
The downside risk remains clear. Another round of tariff hikes could weigh on cyclical Dow stocks once more, and a disappointing earnings report from major tech firms or a fresh AI setback might dampen overall risk appetite.
The Fed’s next major event is its two-day policy meeting wrapping up January 28. The decision drops at 2:00 p.m. ET, followed by the chair’s press conference at 2:30 p.m. ET. 9
