On Friday, U.S. stocks ended lower, with the S&P 500 and Dow Jones Industrial Average decreasing by 0.4%, and the Nasdaq falling sharply by 1.3%. This decline was influenced by rising Treasury yields and a stronger dollar, which subdued investors' risk appetite following President Trump's nomination of Kevin Warsh as Fed Chair Powell's successor. The market interpreted Warsh's nomination as a signal for a more disciplined and cautious approach to easing monetary policy, leading to higher yields on long-term bonds and putting pressure on rate-sensitive assets after a strong rally in January.
Sectors such as materials, technology, and communication services lagged behind, whereas healthcare saw better performance. Despite presenting solid earnings and showing resilient iPhone sales, Apple's stock rose only slightly by 0.5%, as high valuations limited further gains. Conversely, Visa's shares fell 2.9% despite surpassing earnings expectations, indicating that the positive results were largely anticipated. ExxonMobil experienced a decrease of 0.7%, while Chevron's shares increased by 3.3% thanks to better-than-expected profits. American Express saw its stock fall by 1.8% after missing earnings projections, whereas Verizon surged by 11.8% due to strong forward guidance.
Even with this market pullback, the S&P 500 recorded a 1.2% gain for the month of January, with the Dow Jones climbing 1.6% and the Nasdaq posting a 1.1% increase.
