U.S. stock market/ Wall Street/ S&P 500/ Dow Jones/ Trump re-election/ Federal Reserve/ earnings impact/ Airbnb/ Pinterest/ Upstart/ oil prices/ global markets/ Newslooks/ NEW YORK/ J. Mansour/ Morning Edition/ U.S. markets were subdued Friday morning, with the S&P 500 and Dow showing minimal changes as Wall Street wraps up a week of substantial gains. Notable stock movements included Airbnb, Pinterest, and DraftKings, which fell on mixed earnings reports, while Upstart surged on better-than-expected results. Investors remain cautious about the Federal Reserve’s rate plans and potential inflationary pressures from President Trump’s economic policies. U.S. stocks are coasting to the close of their best week in a year with some modest moves on Friday. The S&P 500 was 0.2% higher in early trading and on track for its biggest weekly gain since early November 2023. The Dow Jones Industrial Average was up 83 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.
“U.S. Markets Edge Upward Amid Week of Gains Quick Looks”
- Minimal Early Market Movement: S&P 500 futures held steady, while the Dow ticked up less than 0.1% on Friday.
- Earnings Impact Stocks: Airbnb and Pinterest fell after reporting disappointing guidance, while Upstart jumped on strong revenue.
- Fed Rate Cuts and Trump Policy Concerns: Markets are watching the Fed’s next steps amid inflation concerns tied to Trump’s economic policies.
- Global Market Reactions: European and Asian markets were mixed, with investors looking to China for potential economic stimulus.
- Energy and Currency Trends: Oil prices fell, with U.S. crude at $71.14 per barrel, while the dollar dipped against the yen.
Wall Street Cruises Toward the Close of its Best Week in a Year
Deep Look
Wall Street trading started off subdued Friday morning as major U.S. indices held their positions, wrapping up a strong week with the S&P 500 and Dow Jones Industrial Average showing minimal changes in early futures trading. After a week marked by considerable gains, the markets appeared to be taking a breather, The S&P 500 was 0.2% higher in early trading and on track for its biggest weekly gain since early November 2023. The Dow Jones Industrial Average was up 83 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.
The week’s overall optimism comes after former President Donald Trump’s re-election and the Federal Reserve’s decision to cut its primary lending rate for the second consecutive time, fueling further market gains. The central bank has gradually shifted toward rate cuts since September, with the goal of supporting the job market as inflation nears the Fed’s 2% target. However, some investors are wary of potential inflationary impacts from Trump’s proposed economic policies, including tariffs, which could influence the Fed’s long-term plans.
In terms of individual stocks, notable movements included losses for Airbnb, which tumbled 6.1% after issuing disappointing fourth-quarter guidance despite mixed third-quarter results. Pinterest also saw a sharp drop, down 13.7% in pre-market trading after its revenue projections fell short of investor expectations, even though it reported strong sales and profit. Similarly, DraftKings shares fell by 4.6% after it posted a larger-than-expected quarterly loss and lowered its outlook.
Conversely, Upstart saw a 17% surge in early trading after posting a significantly smaller loss than anticipated on strong revenue performance. Upstart, an AI-driven lending platform, has seen recent gains as it helps banks and financial institutions improve loan analysis and approvals.
Globally, European markets were down at midday, with Germany’s DAX and France’s CAC 40 falling 0.6% each, while Britain’s FTSE 100 slipped 0.5%. Investors in Europe remain cautious about potential economic shifts tied to Trump’s policies and the Fed’s rate decisions.
In Asia, trading was mixed as markets awaited potential economic support measures from Beijing. Following a legislative meeting, Chinese officials unveiled a massive 6 trillion yuan ($839 billion) plan aimed at helping local governments refinance their debt after the property market downturn and economic pressures from the COVID-19 pandemic. Hong Kong’s Hang Seng index initially rose but ultimately fell 1.1% by the close, while the Shanghai Composite Index dipped 0.5%.
Meanwhile, Japan’s Nikkei 225 managed a 0.3% gain as investors digested Nissan Motor Corp.’s announcement that it will lay off 9,000 employees and reduce production by 20% to address falling sales and rising inventory costs. This news weighed on Nissan shares, which dropped 6%.
In South Korea, the Kospi declined by 0.1%, while Australia’s S&P/ASX 200 gained 0.8% on strength in the resource and banking sectors.
In the energy markets, U.S. benchmark crude oil prices fell by $1.22 to $71.14 per barrel, while Brent crude, the global standard, dropped $1.06 to $74.57 per barrel. The energy market has seen volatility this week, influenced by global demand concerns and geopolitical tensions.
On the currency front, the U.S. dollar weakened against the yen, falling to 152.49 yen from 152.94 yen, while the euro dipped to $1.0768 from $1.0804.
Despite Friday’s flat trading, the week has been a positive one for U.S. indices overall. As of Thursday’s close, the S&P 500 and Dow Jones are each up around 4% for the week, while the Nasdaq has surged over 5%, buoyed by investor optimism about economic stability and continued Fed support. However, with the uncertainties of Trump’s policies and the Fed’s potential adjustments, markets are likely to remain watchful in the coming weeks.
