The S&P 500 Index ($SPX) (SPY) closed Friday up +0.19%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.66%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.17%. March E-mini S&P futures (ESH26) rose +0.17% and March E-mini Nasdaq futures (NQH26) fell -0.19%.
Stock market indices were mixed on Friday. The S&P 500 and Dow Jones Industrial Average rallied from a two-week low and finished higher, led by strength in chipmakers and AI infrastructure stocks. However, stock market gains were limited and the Nasdaq 100 fell to a 2-week low amid weakness in large-cap technology stocks. Additionally, weakness in cybersecurity stocks and insurance companies limited gains in the broader market. Additionally, rising bond yields have been a negative factor for stocks, with the yield on the 10-year Treasury note climbing to a 1.5-week high of 4.19% on Friday.
Strength in European stocks on Friday provided support to US equity markets after the Euro Stoxx 50 hit a new record high.
The December US S&P Manufacturing PMI remained unrevised at 51.8, in line with expectations.
Markets are pricing in a 15% chance of a -25 basis point rate cut at the next FOMC meeting on January 27-28.
Foreign stock markets stabilized higher on Friday. The Euro Stoxx 50 reached a new all-time high and closed up +1.02%. The Shanghai Composite in China and the Nikkei Stock 225 in Japan are closed today for the New Year holiday.
Interest rate
March 10-year Treasuries (ZNH6) closed down -7.5 ticks on Friday. The yield on the 10-year T-note increased by +2.0 bp to 4.187%. March Treasuries fell to a 1.5-week low on Friday, and the yield on the 10-year Treasury note hit a 1.5-week high of 4.195%. Treasuries fell Friday as inflation expectations rose, with the 10-year breakeven inflation rate hitting a 2.5-week high of 2.264%. Additionally, the negative carryover of the decline in European 10-year government bond prices to their 1.5-week low on Friday weighed on Treasuries.
European government bond yields rose on Friday. The 10-year German Bund yield hit a 1.5-week high of 2.910% and ended up +4.5bps at 2.900%. The UK 10-year gilt rose to a 1.5-week high of 4.537% and ended up +5.8 bps off the high.
The S&P Eurozone Manufacturing PMI for December was revised down -0.4 to 48.4 from the previously reported 49.2.
The Eurozone’s November M3 money supply increased by +3.0% year-on-year, higher than expectations of +2.7% year-on-year and the highest in four months.
The UK S&P Manufacturing PMI for December was revised down -0.6 to 50.6 from the previously reported 51.2.
Swaps anticipate a 1% probability of a +25 basis point rate hike by the ECB at its next policy meeting on February 5.
Stock movers in the United States
Chipmakers and AI infrastructure stocks rose Friday to support gains across the broader market. Sandisk (SNDK) closed up over +15% to lead the S&P 500 gainers, and Micron Technology (MU) closed up over +10% to lead the Nasdaq 100 gainers. Additionally, ASML Holding NV (ASML) closed up over +8% after Alethia Capital double upgraded the stock to buy or sell with a price target of 1,500 $. Additionally, Lam Research (LRCX) closed up over +8% and Intel (INTC) closed up over +6%. Finally, Marvell Technology (MRVL) closed up over +5%, and Western Digital (WDC), ARM Holdings Plc (ARM), Applied Materials (AMAT), KLA Corp (KLAC), Advanced Micro Devices (AMD), and Seagate Technology Holdings (STX) closed up over +4%.
Stocks exposed to cryptocurrencies rebounded on Friday as Bitcoin (^BTCUSD) rose more than +1%. Riot Platforms (RIOT) closed up over +11%, and Mara Holdings (MARA) and Galaxy Digital Holdings (GLXY) closed up over +10%. Additionally, Coinbase Global (COIN) closed up over +4% and Strategy (MSTR) closed up over +3%.
Shares of the Magnificent Seven gave up early gains Friday and fell, weighing on the broader market. Tesla (TSLA) closed down more than -2% after reporting Q4 vehicle deliveries of 418,227, below the consensus figure of 440,907. Additionally, Microsoft (MSFT) closed down more than -2%, and Amazon.com (AMZN) and Meta Platforms (META) closed down more than -1%. Additionally, Apple (AAPL) closed down -0.34%. However, Nvidia (NVDA) bucked the trend and closed up over +1%, and Alphabet (GOOGL) closed up +0.69%.
Cybersecurity stocks fell on Friday, weighing on the Nasdaq 100. Atlassian (TEAM) closed down more than -4%, and CrowdStrike Holdings (CRWD) closed down more than -3%. Additionally, Palo Alto Networks (PANW) closed down over -2%, and Zscaler (ZS) and Fortinet (FTNT) closed down over -1%.
Insurance stocks were under pressure on Friday. Progressive (PGR) closed down more than -6% and Erie Indemnity (ERIE) closed down more than -3%. Additionally, Allstate (ALL) closed down more than -2%, and American International Group (AIG) and Travelers (TRV) closed down more than -1%.
Sable Offshore (SOC) closed down more than 30% after a federal appeals court ruled the company could restart its California pipeline and begin pumping oil from its three platforms off the coast of Santa Barbara, California.
RH (RH) closed up over +8% and Wayfair (W) closed up over +6% after President Trump delayed raising tariffs on upholstered furniture until next year.
Vertiv Holdings (VRT) closed up over +8% after Barclays upgraded the stock from overweight to equal weight with a $200 price target.
Income Reports (1/5/2026)
None.
As of the date of publication, Rich Asplund did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. This article was originally published on Barchart.com
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