Stocks were mixed on Friday as market participants digested a busy week of inflation data, more clarity around President Donald Trump's tariff plans, and earnings reports. The Dow Jones Industrial Average lost over 165 points, while the S&P 500 Index settled below the flatline and the tech-heavy Nasdaq Composite climbed over 0.4%.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Despite the session's broader weakness, all three major averages ended the week in positive territory, with the Nasdaq outperforming the broader market with an increase of 2.6%. The S&P 500 rose about 1.5% and the Dow added about 0.6%.
UBS noted on Friday that while markets saw some tariff relief after Trump's announcement on Thursday, aggressive measures could lead to retaliation from U.S. trading partners and could impact Wall Street.
"Markets will be watching closely for any shifts toward full enforcement, as a broad implementation of tariffs would raise inflation risks and likely weigh on equities, and have the potential to dent, but not derail, U.S. economic growth," said Solita Marcelli, chief investment officer Americas for UBS Global Wealth Management, in a note to clients.
"There are risks of a tit-for-tat ratcheting up of measures," Marcelli added.
U.S. Retail Sales dipped in January, the Commerce Department reported Friday, signaling there may be some waning of economic growth from consumers. Sales fell 0.9% for the month from December's upwardly revised gain of 0.7% and below the Dow Jones estimate for a 0.2% decline. Excluding autos, sales also fell by a more-than-expected 0.4%.
Consumer spending accounts for about two-thirds of all economic activity in the United States.
"Maybe people are getting confused on the tariff story and think they are happening immediately and are therefore not even considering a purchase," said James Knightley, chief international economist at ING, quoted by Reuters. "We will need to wait until the February data to see if this is the start of a more cautious consumer trend or indeed whether it was simply a weather-related pull-back."
On the Earnings Front:
Moderna
The company also reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion and anticipates only $200 million in sales during the first half of the year due to seasonal demand for respiratory virus vaccines.
Coinbase
"The majority of the Y/Y growth in Trading Volume was driven by higher levels of Crypto Asset Volatility - particularly in Q1 and Q4 - as well as higher average crypto asset prices," the company said in its shareholder letter. "The two primary factors underpinning these stronger macroeconomic factors were the launch of the bitcoin ETF products in Q1′24, and the election of a pro-crypto President and Congress in Q4′24 and the associated expectation of regulatory clarity - both of which resulted in elevated spot crypto trading activity."
Airbnb
"Airbnb is a fundamentally stronger company today than it was several years ago," the company said in its letter to shareholders. "We're continuing to build on this momentum in 2025, executing a multi-year strategy to perfect the core service, accelerate growth in global markets, and launch and scale new offerings."