Stocks retreated on Friday as technology shares remained in a funk, even as investors largely approved of President Donald Trump’s pick of Kevin Warsh to lead the Federal Reserve. Still, the S&P 500 squeaked out a January gain, despite Friday’s losses and volatile trading this month.
The Dow Jones Industrials cratered 139.09 points to close the week at 48,892.97.
The much-broader index skidded 29.98 points to 6,939.03.
The NASDAQ lost 223.71 points to 22,461.82.
Apple shares inched lower even after the company beat fiscal first-quarter earnings and revenue expectations, aided by a significant surge in iPhone sales. Data storage stock Sandisk popped 12% on the back of strong guidance. KLA Corp lost 13% after guidance for non-GAAP gross margin in the fiscal third quarter came in light.
Despite Friday’s weakness, the major averages were headed for a positive month. The S&P 500, Dow Jones Industrial Average and NASDAQ were all up more than 1% for January.
Warsh’s selection was likely to ease concern about Fed independence because of his experience as a Fed governor and strong stance at times against inflation.
While he is likely to push for lower rates in short term as Trump wants, the financial markets view him as someone who wouldn’t always follow the president’s direction and maintain credibility for monetary policy.
Apple ticked lower despite beating fiscal first-quarter expectations and reporting a significant surge in iPhone sales. That slide follows Microsoft’s 10% post-earnings drop on Thursday, marking its worst day since 2020 and wiping out more than $350 billion in market cap.
KLA Corp lost 13% on Friday after its forecast suggested a deceleration in growth.
But outside of tech, Verizon shares surged more than 11%, on track for their best day since 2008. The telecommunications giant beat analyst expectations and providing a strong full-year outlook for earnings.
Prices for the 10-year Treasury dipped a bit Friday, raising yields to 4.25% from Thursday’s 4.24%. Treasury prices and yields move in opposite directions.
Oil prices tacked on 36 cents to $65.78 U.S. a barrel.
Gold prices staggered $517.40 to $4,801 U.S. an ounce.
