Stocks wind up mixed on Wall Street after spending most of the day in the red

U.S. stocks ended mixed on Friday, capping their first weekly decline in four weeks as major indices retreated from record highs set the previous week. After a day of significant volatility, the S&P 500 managed a slight gain of 8.48 points, or 0.1%, closing at 6,728.80, despite being down as much as 1.3% during the session.

The Dow Jones Industrial Average followed a similar pattern, rebounding from earlier losses to finish up 74.80 points, or 0.2%, at 46,987.10. The technology-heavy Nasdaq, which had fallen as much as 2.1% during trading, recovered most of its losses but still closed down 49.46 points, or 0.2%, at 23,004.54.

Technology stocks were the primary drag on the market, with several large-cap companies exerting outsized influence due to their massive valuations. Alphabet, Google’s parent company, fell 2.1%, while semiconductor firm Broadcom dropped 1.7%.

Corporate earnings continued to drive individual stock movements. Payments company Block, which operates Square and Cash App, tumbled 7.7% after reporting results that missed analyst forecasts. In contrast, exercise equipment maker Peloton jumped 14.2% after beating expectations. Online travel company Expedia Group surged 17.5% following stronger-than-anticipated quarterly results.

The earnings season has been largely positive, with more than 90% of S&P 500 companies having reported results for the latest quarter. According to data from FactSet, most companies have exceeded Wall Street’s expectations, with the influential technology sector showing the strongest growth.

These corporate reports have taken on heightened significance amid the ongoing U.S. government shutdown, now the longest in history, which has halted the release of key economic data typically relied upon by investors and economists. The shutdown has prevented the publication of October’s employment report, following the already missed September data. This absence of official labor market information is particularly concerning as job growth was already showing signs of weakness before the shutdown began.

“Consumers are starting to get concerned about the potential effects of the government’s shutdown on economic activity,” noted Eugenio Aleman, chief economist for Raymond James, in a note to investors.

Private economic indicators are filling some gaps, including Friday’s University of Michigan consumer sentiment report, which revealed a sharp decline in consumer confidence to a three-year low, contrary to economists’ expectations for a slight increase. The survey also indicated that inflation expectations had edged slightly higher, adding to concerns about persistent price pressures at a time when official inflation data is unavailable due to the shutdown.

The lack of reliable economic data complicates matters for the Federal Reserve, which has signaled a more cautious approach to interest rate cuts going forward. The Fed has already cut its benchmark rate twice this year to counter slowing job growth, but must balance supporting the economy against the risk of fueling inflation, which remains above the central bank’s 2% target.

Despite these concerns, investors are still largely anticipating another rate cut at the Fed’s December meeting, with the CME FedWatch tool showing a 67% probability of further easing.

In the bond market, Treasury yields remained steady, with the 10-year Treasury yield holding at 4.09% and the two-year Treasury yield at 3.56%, unchanged from Thursday’s close.

International markets also faced pressure, with European indices declining and Asian markets closing lower. China reported a 1.1% contraction in exports for October, including a 25% drop in shipments to the United States compared to the previous year. However, economists anticipate Chinese exports will recover following recent agreements between U.S. President Donald Trump and Chinese leader Xi Jinping to de-escalate trade tensions between the world’s two largest economies.