The Dow Jones Industrial Average closed lower on Friday, although it had experienced a week of significant gains across major indexes. The Nasdaq was notably buoyed by a strong earnings report from Alphabet, the parent company of Google. Meanwhile, Nvidia’s impressive performance also contributed to a slight uptick in the Dow towards the end of the trading day.
Throughout Friday’s session, the Dow fluctuated but ultimately closed slightly higher, thanks to strong showings from blue-chip stocks like Nvidia, Merck, and Salesforce. These gains counteracted losses experienced by other Dow constituents such as Verizon, UnitedHealth Group, and Nike.
The S&P 500 rose by 0.7% and the Nasdaq saw a more robust increase of 1.3%. Over the week, the Nasdaq surged an impressive 6.7%, while the S&P 500 gained 4.6%. In contrast, the Dow’s gain was more modest at 2.5%.
Small-cap stocks lagged on Friday, although the Russell 2000 managed a tiny gain. The yield on the 10-year Treasury note dipped slightly to 4.26%. Trading volume on both the NYSE and Nasdaq decreased compared to Thursday, although advances outnumbered declines in the afternoon.
Stock-wise, Spotify saw a resurgence as it broke through a double-bottom pattern, marking a key buying opportunity at 621.20. In terms of sector performance, materials and financials struggled, whereas growth-focused sectors like technology, communication services, and consumer discretionary stocks saw positive movement.
In other notable developments, Apple announced plans to transition sourcing of all iPhones for the U.S. market to India by the end of 2026, which helped the stock recover from earlier losses. Meta Platforms and Amazon also made strides, while Tesla and Microsoft worked their way back up to significant moving averages.
On the international front, speculation about potential tariff changes with China was rampant, with reports suggesting that China may contemplate the removal of a hefty 125% tariff on certain U.S. goods. However, there is conflicting information, as officials from China have denied conversations regarding tariffs.
In the insurance sector, Aon’s disappointing earnings had a ripple effect, pushing several stocks down, including Erie Indemnity and Arthur J. Gallagher.
Meanwhile, Encompass Health’s strong earnings propelled its stock up over 11%, while recent entrants to growth portfolios, such as Loar, also saw a notable increase. Companies in the cybersecurity space, like Zscaler and CrowdStrike, have also begun attracting attention as they approach key buy points.
Economic indicators included a University of Michigan consumer sentiment survey showing a reading of 52.2, surpassing economists’ expectations. The outlook on inflation remained stable with year-ahead expectations at 6.5%.
Overall, the stock market trend continues to show resilience, though both the Nasdaq and S&P 500 are still navigating below their 50-day moving averages—important levels to monitor as market conditions evolve.
