Major U.S. stock indexes closed slightly lower on Friday, ending a week of modest declines just below record territory. The S&P 500 fell 0.1% to 6,940.01, the Dow Jones Industrial Average dropped 0.2% to 49,359.33, and the Nasdaq composite declined 0.1% to 23,515.39, according to the Associated Press. Each index posted a net loss for the week.
The retreats closed out the first full week of fourth-quarter earnings season, which delivered mixed results from major banks and regional lenders while leaving open a central question for investors: whether the high valuations of technology stocks, fueled by enthusiasm over artificial intelligence, are supported by actual company performance. A broader set of corporate results arrives next week alongside the Federal Reserve’s preferred inflation reading.
Technology stocks cushion broader losses
Technology stocks were the primary driver of market movement throughout Friday’s session. Broadcom rose 2.5% and Micron Technology jumped 7.8%, providing offsetting support against losses elsewhere. Semiconductor companies, along with other large-capitalization technology firms, carry outsized weight in the major indexes.
Smaller company stocks fared better than the broad market. The Russell 2000 index eked out a 0.1% gain on Friday and posted a 2% gain for the week.
Bank earnings split
Among regional banks reporting quarterly results Friday, Pittsburgh-based PNC rose 3.8% after beating Wall Street’s fourth-quarter targets. Regions Financial fell 2.6% after its results missed forecasts. Transport company J.B. Hunt Transport Services fell 1% after mixed quarterly results. Their reports followed a week of mixed earnings from larger financial institutions.
“Despite the strong start to 2026, we would not be surprised if markets experience volatility in the coming weeks as fourth quarter earnings progress and the threat of escalating geopolitical tensions remains,” wrote Doug Beath, global equity strategist at Wells Fargo Investment Institute, in a note to investors.
Results from airlines, industrial companies, and technology firms — including United Airlines, 3M, and Intel — are scheduled for the coming week.
Fed, inflation, and Treasury yields
The Federal Reserve’s next policy meeting is in two weeks. Wall Street expects the central bank to hold its current benchmark interest rate as it works to bring inflation down while managing a slowing labor market.
The government is set to release the personal consumption expenditures price index next week — the Fed’s preferred inflation gauge, which stood at 2.79% year over year as of January 2026, above the Fed’s 2% target.
Treasury yields moved higher Friday. The 10-year Treasury yield rose to 4.23% from 4.17%, and the two-year Treasury yield — which more closely tracks expectations for Fed rate decisions — rose to 3.60% from 3.57%.
Oil, gold, and global markets
Crude oil prices recovered after a sharp drop Thursday. U.S. crude rose 0.4% to $59.44 a barrel and Brent crude, the international standard, rose 0.6% to $64.13. The AP reported that oil prices have been volatile amid widespread protests in Iran and President Donald Trump’s statements that the U.S. “will come to their rescue.”
Gold fell 0.6% on Friday but remains up more than 5% in January. European markets fell, and Asian markets were mixed.
Taiwan’s benchmark index rose 1.9% after its government signed a trade deal with the United States. China, which claims the self-governed island as its own territory, protested the agreement.
In a separate shift reflecting the ongoing trade war’s disruptions, Canada agreed to cut its 100% tariff on Chinese electric vehicles in exchange for lower tariffs on Canadian farm products — a break from the U.S.-aligned posture the country had previously maintained, the AP reported.