The benchmark S&P 500 and the Nasdaq struggled for direction on Friday, as investors avoided big bets and assessed fresh data to gauge the health of the economy, while Boeing dipped after issuing a quarterly profit warning.
In midday trading, the Dow Jones Industrial Average fell 57 points, or 0.1%, to 44,507.
The S&P 500 edged up 0.1%, and the Nasdaq was flat.
The benchmark S&P 500 closed Thursday’s session at a record high for the second time in over a month after President Trump called for taxes, oil prices and interest rates to be lowered at the World Economic Forum in Davos, Switzerland.
On a weekly basis, Wall Street’s main indexes are set for their second straight week of advances, with the blue-chip Dow on track for its biggest weekly jump since October 2022.
A S&P Global survey showed that business activity slowed to a ninth-month low in January amid rising price pressures, but firms reported higher hiring, supporting the Federal Reserve’s cautious approach to monetary policy this year.
Separately, the University of Michigan’s final estimate on consumer sentiment dropped to 71.1 from a previous estimate of 73.2.
The central bank is expected to meet next week and traders expect no change to borrowing costs. However, they now see the Fed delivering its first rate cut in June, according to data compiled by LSEG.
On the earnings front, American Express reported a 12% jump in fourth-quarter profit. Its shares, however, fell 2.7% and weighed on the blue-chip Dow.
Boeing lost 0.5% after the planemaker warned of a fourth-quarter loss of about $4 billion. Shares of the company, which is scheduled to report quarterly results on Tuesday, had logged their biggest annual drop since the pandemic in 2024.
Verizon rose 0.8% after the carrier reported higher-than-expected fourth-quarter subscriber additions.
Tariffs are high on investors’ minds after Trump referred to the policies multiple times at separate events this week but did little to lay out entire details of the surcharges he plans to impose on trade partners of the US.
The president has said tariffs on Mexico, Canada, China and the European Union could be announced on Feb. 1, but analysts say major plans could be announced on April 1.
Investors have negatively reacted toreports about potential tariffs, on worries that they could spark a global trade war, add to inflation pressures and slow the Fed’s pace of interest rate cuts.
However, Ross Mayfield, investment strategist at Baird, said “our view has been from the beginning that the concern about Trump inflation was overstated.”
“There could be a slight upward pull on inflation from certain tariffs and maybe from immigration policies leading to higher wages, but there’s also a downward pull from deregulation and more pro energy policies.”