Tech Stocks Slow Market

Still, the week proves a winner
By Newser Editors and Wire Services
Posted Jan 26, 2024 3:38 PM CST
Tech Stocks Slow Market
An Intel chip is displayed during an event called AI Everywhere in New York last month.   (AP Photo/Seth Wenig)

Wall Street closed out its latest winning week with a mixed finish on Friday, as drops for technology stocks dragged on the market:

  • The S&P 500 slipped 3.19 points, or 0.1%, to 4,890.97, the first decline for the index after a six-day winning streak led it to set record highs for five straight days, per the AP.
  • The Dow rose 60.30, or 0.2%, to 38,109.43.
  • The Nasdaq, pulled down by tech, fell 55.13, or 0.4%, to 15,455.36.

Intel led chip stocks lower even though it reported stronger profit for the last three months of 2023 than analysts expected. It dropped 11.9% after giving forecasts for revenue and profit for the start of 2024 that fell short of Wall Street's estimates. KLA, a supplier for the chip industry, also dragged on tech stocks despite reporting better quarterly results than expected. It sank 6.6% after saying it still sees market conditions as challenging in the near term and giving a forecast for upcoming revenue that fell short of analysts' estimates.

The US stock market nevertheless closed out another winning week as reports keep suggesting inflation is cooling while the economy continues to power higher. The unexpected backdrop has hopes high that Wall Street's dream scenario can come true: one where a resilient economy drives profits higher for companies, while inflation moderates enough to get the Federal Reserve to cut interest rates many times this year. The latest report on Friday showed the measure of inflation the Fed prefers to use behaved just about exactly as expected in December. Overall inflation by that measure was 2.6% during the month, per the AP, matching November's rate.

(More stock market stories.)

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