U.S. stocks are showing mixed movement on Friday, with Wall Street’s recent three-day rally losing momentum as it nears the end of another volatile week. The S&P 500 was down 0.1% by midday, with nearly three-quarters of stocks within the index declining. The Dow Jones Industrial Average dropped 237 points, or 0.6%, while the Nasdaq composite gained 0.3%, driven by strong performances from some major tech stocks.
Intel’s stock fell 6.8% after the chip maker reported increased uncertainty in the industry and provided a forecast for upcoming revenue and profits that missed analysts’ expectations, despite exceeding early-year expectations. Eastman Chemical also saw its stock drop 5.9% after it issued a profit forecast for the spring that fell short of estimates. The company’s CEO, Mark Costa, cited growing macroeconomic uncertainty and unclear demand due to tariffs. Similarly, Skechers U.S.A. pulled its full-year financial guidance due to concerns over global trade policies, although the company reported record revenue for the quarter. Its stock fell 4.3%.
These companies are part of a growing trend of businesses struggling to provide clear financial outlooks due to the unpredictable nature of trade relations under President Trump’s administration. Earlier in the week, stocks had rallied on hopes that Trump might ease his stance on tariffs and reduce tensions with the Federal Reserve, which had previously unsettled markets. Investors hoped that a rollback of tariffs could help avoid a recession, which many see as increasingly likely due to the ongoing trade war.
However, the back-and-forth nature of tariffs continues to create uncertainty, with businesses having to constantly adjust their strategies and operations. Smaller companies are particularly vulnerable, lacking the resources or flexibility to adapt to shifting conditions as easily as larger firms.
Despite these challenges, Alphabet, Google’s parent company, saw its stock rise 2.2% after reporting a 50% surge in profits for the first quarter, surpassing analyst expectations. Alphabet’s performance, along with a 2.2% rise in Nvidia’s stock, helped buoy the S&P 500.
Internationally, European stock indexes saw slight gains, while Asian markets showed mixed results. Japan’s Nikkei 225 rose 1.9%, while stocks in Shanghai dropped by 0.1%. In the bond market, U.S. Treasury yields continued to ease, with the 10-year yield falling to 4.28%, down from 4.32% on Thursday. Yields had recently spiked near 4.50%, raising concerns that investors were losing confidence in U.S. bonds as a safe investment, but they have since dropped as weak economic reports increased expectations of potential interest rate cuts by the Federal Reserve later this year.
Additionally, a new consumer sentiment report showed a decline in U.S. consumer expectations for the future, though it wasn’t as steep as economists had predicted. The U.S. dollar strengthened against the euro and other currencies, recovering from earlier losses earlier this month that had caused concern among investors.
