Wall Street Heads for Weekly Gains as Energy and Tech Stocks Advance
Wall Street’s major indexes traded near flat on Friday but remained on track for solid weekly gains, driven by a pullback in Treasury yields and strong performances in the energy and technology sectors. Nvidia (NVDA), Apple (AAPL), and Airbnb (ABNB) were among the key gainers, while DaVita (DVA) and Applied Materials (AMAT) struggled after disappointing earnings. Investors also weighed new tariff-related developments from former President Donald Trump, adding a layer of uncertainty to the outlook.
How Did Economic Data Impact Markets?
U.S. retail sales fell 0.9% in January, a sharper decline than expected, following a revised 0.7% increase in December. The weaker consumer spending data reinforced expectations of potential Federal Reserve rate cuts later in the year. The 10-year Treasury yield fell 7 basis points to 4.44%, extending its decline for a second straight session. Traders are now pricing in at least one 25-basis-point rate cut by year-end, with a 50% probability of a second cut.
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The energy sector outperformed, rising 0.8%, as oil prices climbed. Technology stocks also advanced, with Nvidia (NVDA) gaining 1% and Apple (AAPL) up 0.8%.
In earnings-driven moves, Airbnb (ABNB) surged 14.4% after reporting strong quarterly revenue. DaVita (DVA) plunged 13.5% after missing profit forecasts, with Warren Buffett’s Berkshire Hathaway trimming its stake in the company. Applied Materials (AMAT) fell 6.4% after providing weaker-than-expected revenue guidance.
Seven of the 11 S&P 500 sectors ended higher for the session, led by energy, technology, and financials.
What’s the Outlook for Tariffs and Market Volatility?
Trump’s directive to his economic team to study reciprocal tariffs on countries taxing U.S. imports introduced fresh uncertainty. While no immediate tariffs were announced, Commerce Secretary nominee Howard Lutnick indicated studies would be completed by April 1. Investors remain cautious, as potential trade tensions could impact corporate earnings and supply chains.
What’s Next for Traders?
The S&P 500 remains near record highs, with traders closely watching economic data for further clues on Fed policy. With U.S. markets closed on Monday for Washington’s Birthday, investors will look ahead to next week’s inflation reports and Federal Reserve commentary. If Treasury yields continue to ease, equities could extend their gains, but tariff uncertainty may add volatility in the coming weeks.
More Information in our Economic Calendar.
