New York, January 24, 2026, 12:12 (EST) — Market closed
- The Dow dropped 0.6% on Friday, closing at 49,098.71, dragged down by a selloff in Intel that pulled the index into the red for the week.
- The S&P 500 held steady, with the Nasdaq inching higher as investors shifted their focus among major tech stocks.
- Attention turns next week to the Fed’s Jan. 27–28 meeting amid a heavy slate of earnings reports.
The Dow Jones Industrial Average dropped 285.30 points, or 0.6%, ending Friday at 49,098.71 after a week of sharp swings fueled by tariff threats. The S&P 500 nudged up 2.26 points to close at 6,915.61, and the Nasdaq Composite climbed 65.22 points, finishing at 23,501.24.
Trading kicks off again Monday, bringing a double challenge for investors: a Federal Reserve announcement and a packed earnings calendar featuring Apple, Microsoft, Meta Platforms, and Tesla. “The earnings bar had better be met,” warned Franklin Templeton strategist Chris Galipeau, noting that valuations are already stretched. Reuters
Intel set the tone Friday, plunging 17% after it forecast quarterly revenue and profits that missed expectations. The chip giant also cautioned about challenges meeting demand for server chips powering AI data centers. Janus Henderson portfolio manager Julian McManus described the market as entering a “show-me” phase when it comes to revenue growth. Reuters
The Dow’s makeup made the sell-off worse. Because it’s price-weighted, stocks with higher prices have a bigger impact on the index than those priced lower. MarketWatch calculated that Goldman Sachs and Caterpillar alone shaved more than 300 points off the Dow that day.
Intel’s forecast hit investors squarely. The chipmaker expects first-quarter revenue of $12.2 billion and adjusted earnings around breakeven. Analysts had been looking for roughly $12.57 billion in revenue and a small profit, according to Investors Business Daily.
Macro data offered little clarity on the growth versus inflation debate. S&P Global’s flash composite PMI, which surveys business activity, stayed steady at 52.8 in January. Chief Business Economist Chris Williamson pointed to rising costs, “widely blamed on tariffs,” as a factor keeping affordability in the spotlight. S&P Global
Consumer mood nudged up, but the bounce was modest. The University of Michigan’s Consumer Sentiment Index edged to a final 56.4 in January. Survey director Joanne Hsu noted that households continue to face “pressures on their purchasing power” due to elevated prices. Reuters
Money continued flowing into safe havens. Gold futures climbed around 1.4%, reaching near $4,980 an ounce late Friday. At the same time, the 10-year Treasury yield dipped under 4.24%, according to Investopedia.
Traders are largely betting the Fed will hold steady. The odds sit near 97% that the central bank will keep its key rate between 3.5% and 3.75%. Still, investors expect Chair Jerome Powell’s news conference to focus heavily on concerns about the Fed’s independence.
The week ahead is tight, with little room for slip-ups. Barron’s points out that Powell’s term as chair wraps up in May, meaning his comments might “carry more weight than ever.” That could rattle stocks if he turns out more hawkish than investors anticipate. Barron’s
The next major event hits Wednesday: the Fed’s policy decision comes out at 2 p.m. ET on Jan. 28, with Powell’s press conference kicking off at 2:30 p.m., according to the central bank’s schedule. Afterward, investors will shift focus back to earnings and guidance, hunting for signs that AI spending is translating into profits rather than just ballooning costs.
