Specialist Michael Pistillo works at his post on the floor of the New York Stock Exchange. (AP Photo)
Wall Street closed a volatile week with cautious trading on Friday, as a sharp drop in Intel weighed on stocks and gold surged to another all-time high. Investors balanced mixed corporate earnings, easing inflation expectations, and lingering geopolitical and trade concerns.
Stocks Drift in Tentative Trading
U.S. stocks finished mostly lower, with major indexes showing uneven movement. The S&P 500 was nearly flat but posted its second straight weekly loss. The Dow Jones Industrial Average dropped 285 points, while the Nasdaq Composite managed a modest gain.
Most stocks declined, and Intel dragged the market lower after its shares plunged 17 percent. The chipmaker reported better-than-expected results for late 2025, but investors focused on its weaker forecast for the first quarter of 2026. The company cited ongoing supply shortages across the semiconductor industry, although executives highlighted long-term opportunities tied to artificial intelligence.
Market Jitters and Currency Moves
Bond market activity was relatively calm compared with sharp swings earlier in the week, but signs of caution remained. The U.S. dollar weakened against major currencies, including the Japanese yen and Swiss franc.
Earlier, the dollar had fallen sharply after President Donald Trump threatened tariffs on European countries amid tensions over Greenland. Some stability returned after Trump announced a framework for a potential deal and withdrew the tariff threats, though details remain scarce.
Gold Surges as Investors Seek Safety
Gold prices climbed to a fresh record, approaching $5,000 per ounce. The precious metal is already up nearly 15 percent this year, signaling that investors are still seeking safe-haven assets amid uncertainty in equities, currencies, and global politics.
Corporate Winners and Losers
Several major companies moved the market on earnings and deal news. Capital One Financial fell 7.6 percent after posting weaker-than-expected profits and announcing a $5.15 billion acquisition of Brex.
Clorox rose after announcing a $2.25 billion acquisition of GOJO Industries, the maker of Purell hand sanitizer. CSX also gained despite lower profits, as analysts praised its outlook for improved operating margins in 2026.
Economic Signals Show Mixed Picture
Treasury yields edged lower, with the 10-year yield slipping to 4.23 percent. A University of Michigan survey showed consumers’ inflation expectations for the next year dropped to 4 percent, the lowest in a year. While still above the Federal Reserve’s 2 percent target, the decline eased fears of a self-reinforcing inflation cycle.
Consumer sentiment also improved slightly, suggesting households may continue spending. A separate report indicated U.S. business activity is still expanding, adding to optimism about economic resilience.
The Federal Reserve is widely expected to keep interest rates unchanged at its upcoming policy meeting.
Global Markets Steady After Turbulence
Markets overseas were mixed, with European indexes showing uneven performance after gains across Asia. Japan’s Nikkei rose after the Bank of Japan held interest rates steady, continuing its gradual shift away from ultra-low rates.
Global markets have stabilized after earlier concerns over rising Japanese bond yields and fiscal policy uncertainties, which had rattled investors earlier in the week.
