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Dow closes 300 points lower Friday as White House says tariffs will start Saturday: Live updates

Traders work at the New York Stock Exchange on Jan. 29, 2025.
NYSE

Traders work at the New York Stock Exchange on Jan. 29, 2025.

The S&P 500 slid Friday following news that President Donald Trump's aggressive tariffs against major U.S. trading partners would begin on Saturday.

The broad market index shed 0.50% to close at 6,040.53, while the Dow Jones Industrial Average tumbled 337.47 points, or 0.75%, weighed down by a decline in Chevron. The 30-stock Dow ended the session at 44,544.66. The tech-heavy Nasdaq Composite slipped 0.28% to 19,627.44.

Stocks gave up their earlier gains after White House press secretary Karoline Leavitt announced on Friday afternoon that the president's tariffs will be available for public inspection at some point Saturday. Trump will be leveling 25% tariffs on Canada and Mexico, alongside a 10% duty on China. At its session highs, the blue-chip Dow had risen more than 170 points. Stocks with exposure to these markets reacted such as Corona brewer Constellation Brands and Mexican food chain Chipotle, which respectively shed nearly 2% and 1% upon the news.

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"This is very similar to what we saw on Monday, with DeepSeek, right? So there was the news; the first reaction was to sell," said Tom Hainlin, senior investment strategist at U.S. Bank Asset Management Group. "There's the initial reaction to the headlines about tariffs. We have no details about them. We have no details about the percent, whether they're temporary or permanent, what reaction you might get from Canada or Mexico or China. Our perspective is we'll wait, and find out when the actual policy is implemented," Hainlin added.

Investors also honed in on Apple, which exceeded fiscal first-quarter expectations. While Apple reported disappointing sales tied to the iPhone, services revenue appeared to take the spotlight. The stock ended the session 0.7% lower. Shares of Chevron and Exxon Mobil dipped 4.6% and 2.5%, respectively, on the back of disappointing fourth-quarter results.

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Friday's action follows a winning — but volatile — trading session for the three major indexes. Technology has been a major focus of investors this week given Monday's big sell-off sparked by developments out of China's DeepSeek artificial intelligence startup and earnings reports from key players over recent days.

"I thought that that huge sell off was overdone," said Jay Hatfield, CEO of Infrastructure Capital Advisors. "The DeepSeek freak is fading. We think it'll fade further with Amazon and Google reporting next week, and of course, Nvidia later. We're optimistic on that."

After tumbling 3.07% on Monday, the Nasdaq Composite ended Friday with a weekly loss of 1.6%. The S&P 500 and blue-chip Dow finished the week 1% lower and 0.3% higher, respectively. Nvidia, which plunged nearly 17% on Monday, posted a weekly loss of roughly 16%.

Friday also marks the last day of what has been a rocky January for traders. Nevertheless, the three major averages posted monthly gains, with the S&P 500 rising 2.7% and the Nasdaq advancing 1.6%. The Dow outperformed during the period, jumping 4.7%.

"We still do have a fair amount of earnings," Hatfield added. "Usually, it pays to be long during earnings, so we would continue to be bullish into February."

Friday's release of the December data for the personal consumption expenditures price index — the Federal Reserve's preferred inflation gauge — showed an increase of 0.3% from November and a 2.6% annual rate. While this yearly advance was in line with economists' expectations, it marked an acceleration from the prior month's rate of 2.4%, raising some concerns that inflation remains sticky. Excluding food and energy, core PCE also increased 0.2% monthly and 2.8% on an annual basis.

Stocks close Friday's session in the red

After a volatile session, stocks ultimately ended Friday lower.

The S&P 500 shed 0.50%, closing at 6,040.53, while the tech-heavy Nasdaq Composite slipped 0.28% and finished at 19,627.44. The Dow Jones Industrial Average dipped 337.47 points, or 0.75%, and closed at 44,544.66.

— Lisa Kailai Han

DeepSeek threat to U.S. equity outperformance is overstated, according to Capital Economics

Investors may have reacted too harshly to the emergence of DeepSeek as a threat against the AI investing trend, according to Capital Economics.

"We don't think the U.S. equity market outperformance is over yet, despite the challenge from DeepSeek," wrote Thomas Mathews, the firm's head of markets. "The tone in U.S. equity markets has turned more positive lately, with a modest gain on Thursday. … In aggregate, more than half of Monday's DeepSeek-instigated tumble has therefore now unwound."

— Lisa Kailai Han

UBS remains positive on the AI trade

Despite large swings in artificial intelligence stocks this week due to the DeepSeek R1 model release, UBS is staying confident on the sector.

The wave of earnings from several big technology companies this week, including Meta Platforms, Microsoft and Apple, reinforced confidence in megacap tech names, said Solita Marcelli, chief investment officer Americas.

"Tech sector volatility is likely to continue in the months ahead. But we see the initial set of large-cap tech results as reassuring and believe the AI growth story remains intact," Marcelli wrote in a Friday note.

— Hakyung Kim

InfraCap's Jay Hatfield sees three more rate cuts this year

Jay Hatfield, CEO of Infrastructure Capital Advisors, sees three more rate cuts on the horizon for 2025.

In an interview with CNBC, Hatfield estimated that the first cut might take place in March, and — if not — then in the following FOMC meeting.

"They should do it in March. The economy is weakening," Hatfield said.

— Lisa Kailai Han

The Year of the Snake is the worst zodiac cycle for S&P 500

A not-so-happy Lunar New Year for equity investors? The Year of the Snake, which commenced Wednesday on Lunar New Year, is historically a weak period for stocks, according to data from Mark Hackett, chief market strategist at Nationwide.

The Year of the Snake has been the worst-performing zodiac cycle for the S&P 500, averaging a 2% decline since 1930, the data showed. The Chinese zodiac rotates through its 12 animals.

"Whether coincidence or anomaly, this clash of historical patterns adds an intriguing layer to what has certainly been anything but a benign start to 2025," Hackett said.

— Yun Li

Ford, GM fall following latest tariff updates

The announcement from the White House that tariffs on Mexico, Canada and China are coming Saturday took a bite out of auto stocks.

Shares of Ford, which was up about 1.9% at session highs Friday, retreated quickly and are now down 0.5% for the day.

General Motor's stock held on to some of its gains, but is now up less than 1% after being up 4.5% earlier in the session.

The North American auto industry is tightly integrated between the U.S., Canada and Mexico.

— Jesse Pound

Stocks give up their gains upon Trump's tariff news

White House Press Secretary Karoline Leavitt delivers remarks during the daily briefing at the White House, in Washington, U.S, January 31, 2025. 
Carlos Barria | Reuters
White House Press Secretary Karoline Leavitt delivers remarks during the daily briefing at the White House, in Washington, U.S, January 31, 2025. 

White House Press Secretary Karoline Leavitt said on Friday afternoon that President Trump's aggressive tariffs on major U.S. trading partners would be available for public inspection at some point Saturday.

Stocks sold off upon the news, with the Dow Jones Industrial Average last trading 0.4% lower. At its session highs, it had added around 170 points.

Leavitt said Trump will be leveling 25% tariffs on Canada and Mexico alongside a 10% duty on China, in retaliation for "the illegal fentanyl that they have sourced and allowed to distribute into our country."

— Jeff Cox, Lisa Kailai Han

Equity risk premiums are at decade-plus lows, Barclays says

In a Friday note to clients, Barclays strategist Venu Krishna shared that equity premiums have fallen to their decade-plus lows.

A risk premium is the extra return investors are rewarded with for taking on the risk of buying a certain asset.

"We estimate the S&P 500 equity risk premium to be hovering a few bp below zero while IG OAS [option-adjusted] spreads are below 80bp. Both are close to the lowest readings seen over the last decade. Meanwhile, Treasury term premium has risen aggressively since the Fed's initial rate cut and is now above the 99th percentile of observations over 10 years," he wrote. "We think this aligns with our rates strategists' view that reduced safe-haven demand (amid tight labor markets, front-loaded Fed cuts and a new pro-growth US administration) is pushing real yields and term premium higher."

— Lisa Kailai Han

Colgate-Palmolive, Atlassian among stocks making biggest midday moves

Gabby Jones | Bloomberg | Getty Images

Check out the companies making headlines in midday trading:

  • Colgate-Palmolive — Shares slipped 4% after the household products company reported fourth-quarter revenue that missed analysts' expectations and forecast weak 2025 sales given negative effects from foreign exchange rates.
  • Vertex Pharmaceuticals — The biotech stock jumped 7% after the U.S. Food and Drug Administration approved Vertex Pharmaceuticals' non-opioid painkiller pill. Vertex is the first drugmaker in decades to get U.S. approval for a new type of pain medicine. Vertex's new pill is a new alternative for pain relief that comes without the risk of addiction. 
  • Atlassian — Shares surged about 16%, hitting a new 52-week high, after the software company posted better-than-expected fiscal second-quarter results. For the period, Atlassian posted adjusted earnings of 96 cents per share on revenue of $1.29 billion. Analysts surveyed by LSEG had anticipated 76 cents in earnings per share and $1.24 billion in revenue.

For the full list, read here.

— Pia Singh

Communication Services ETF on pace for 10th straight gain

The SPDR S&P Communication Services Fund (XLC) was last trading 1.2% higher on Friday, leading all other sector exchange-traded funds.

This gain put the fund on pace for its first 10th straight positive session since an 11-day winning streak in January 2023. XLC is also on track for its third weekly gain in a row and its eighth positive month out of the past nine.

Earlier this morning, the ETF hit a fresh all-time high. Meta Platform's 8% week-to-date gain has led the sector to the upside. T-Mobile, AT&T and Electronic Arts have all risen more than 5% week to date.

— Nick Wells, Lisa Kailai Han

Walgreens tumbles 11% after suspending quarterly cash dividend

Shares of pharmacy chain Walgreens Boots Alliance were last trading 11% lower after the company said on Thursday that it would suspend its quarterly cash dividend.

This marked Walgreens' worst day since June 27, 2024, when it plunged 22% after cutting its annual profit outlook. The stock has shed more than 56% over the past year and is down 90% from its all-time closing high of $96.68 on Aug. 5, 2015.

— Tom Rotunno, Lisa Kailai Han

21 stocks in the S&P 500 trade at new 52-week highs

Rafael Henrique | Lightrocket | Getty Images

During Friday's session, 21 stocks in the S&P 500 traded at new 52-week highs.

Of these tickers, 17 names reached new all-time highs. Stocks that hit this milestone included:

  • Alphabet C shares trading at all-time highs back to the special distribution on April 2, 2014, when the nonvoting share was created, and it began trading on April 3, 2014
  • Live Nation Entertainment trading at all-time-high levels back to its initial public offering in December 2005
  • Palantir Technologies trading at all-time highs back to its IPO in September 2020
  • CBRE trading at all-time-high levels back to its IPO in June 2004
  • Royal Caribbean trading at all-time-high levels back to its IPO in April 1993
  • Walmart Stores trading at all-time-high levels back to when it first began trading on the New York Stock Exchange in August 1972
  • Goldman Sachs trading at all-time-high levels back to its IPO in May 1999
  • JPMorgan trading at all-time-high levels back to its IPO in 1983
  • Visa trading at all-time-high levels since its IPO in March 2008
  • Darden trading at all-time-high levels back to its IPO in 1995

On the other hand, Edison International and PG&E were the only stocks to reach new 52-week lows.

— Lisa Kailai Han

Nasdaq Composite claws back DeepSeek losses for the week

The Nasdaq Composite dipped 3.07% on Monday following Chinese startup DeepSeek's emergence as a threat to AI investing.

But on Friday, it was clear that the tech-heavy index had, in large part, made up these losses. The Nasdaq Composite was last trading 1.3% higher and is poised to finish the week around the flatline.

— Lisa Kailai Han

Chicago Fed President Goolsbee sees progress on inflation

Chicago Federal Reserve President Austan Goolsbee told CNBC on Friday that he sees continued progress on inflation, though he is watching for potential effects that tariffs might have on prices.

"The underlying part of the economy, to me, looks like it's on a on an excellent path, and this is yet another indicator that our fight to get back to a 2% inflation, we're still making progress on that," the policymaker said during a "Squawk on the Street" interview with CNBC's Steve Liesman. "That opens a door for rates to be a fair bit lower than they are today," he added.

However, Goolsbee also discussed the effect President Trump's much-discussed tariffs could have on policy.

"If it were a one-time increase in tariffs that increased cost, but there was no retaliation, and it wasn't lasting, that's supposed to, in theory, be a transitory increase in the inflation rate. And so it's not obvious that monetary policy should react to it," he said. "But the difficulty we're going to have here in this near period is … we're going to have to figure out which part of the inflation is the part that monetary policy should look through."

Goolsbee is a voting member this year on the rate-setting Federal Open Market Committee.

— Jeff Cox

Palantir reaches new all-time high

Shares of Palantir hit a fresh all-time high on Friday. The software stock was last trading more than 4% higher.

Palantir has soared 104% over the past three months and 427% over the past year. The company is scheduled to release its fourth-quarter earnings next Monday.

— Adrian van Hauwermeiren, Lisa Kailai Han

Chevron uses 'Gulf of America' phrase in Friday's earnings release

In this aerial photograph taken off the coast of Louisiana, Chevron Corp. Jack/St. Malo deepwater oil platform stands in the Gulf of Mexico on May 18, 2018.
Luke Sharrett | Bloomberg | Getty Images
In this aerial photograph taken off the coast of Louisiana, Chevron Corp. Jack/St. Malo deepwater oil platform stands in the Gulf of Mexico on May 18, 2018.

Energy giant Chevron repeatedly used the phrase "Gulf of America" in the release of its fourth-quarter results Friday morning.

The "Gulf of America" phrase adheres to a directive made by President Trump on the first day of his second term of office.

"The Gulf will continue to play a pivotal role in shaping America's future and the global economy, and in recognition of this flourishing economic resource and its critical importance to our Nation's economy and its people, I am directing that it officially be renamed the Gulf of America," Trump's executive order to rename the Gulf of Mexico as the Gulf of America said.

Prior to this, Chevron had used "Gulf of Mexico" to refer to the body of water.

— Jesse Pound, Lisa Kailai Han

Exxon Mobil and Chevron earnings hurt by weak refining margins

Both Exxon Mobil and Chevron said their refining businesses were under pressure in the fourth quarter, but Exxon was able to offset the effect of weaker margins with higher oil production and lower corporate costs. Meanwhile, Chevron's refining operations posted a loss for the first time since 2020, and the trend could continue to hurt its performance into this year.

Exxon Mobil shares fell more than 1%, while Chevron slipped nearly 3%, widening the divergence in the two stocks. Over the past 12 months, Exxon shares have climbed 6%, while Chevron has gained nearly 4%.

— Christina Cheddar Berk

Stocks open Friday's session higher

Stocks opened Friday's trading session higher.

The S&P 500 popped 0.5%, and the Dow Jones Industrial Average rose 148 points, or 0.3%. The tech-heavy Nasdaq Composite gained 0.8%.

— Lisa Kailai Han

Stocks making the biggest moves premarket

Check out the companies making headlines in premarket trading.

  • Apple — Stock in the iPhone maker climbed 4%. Apple's first-quarter results surpassed analysts' estimates on the top and bottom lines on Thursday, with the company's strong services revenue helping to offset weaker-than-expected iPhone sales.
  • Chevron — The oil giant's stock fell more than 1% after it missed on earnings in the fourth quarter. Chevron reported adjusted earnings of $2.06 per share, while analysts had forecast $2.11 per share, according to LSEG. The weakness was attributed to its refining business, which posted its first loss in four years. Meanwhile, revenue came in at $52.23 billion, topping the consensus call for $46.75 billion.
  • Intel — Shares ticked up 1.5% after marginally beating fourth-quarter earnings expectations. The chipmaker posted earnings per share of 13 cents, excluding items, while analysts polled by FactSet forecast 12 cents.

Read the full list here.

— Brian Evans

PCE price index comes in as expected for December

A customer prepares to check out at a grocery store in Chicago on Jan. 15, 2025.
Scott Olson | Getty Images
A customer prepares to check out at a grocery store in Chicago on Jan. 15, 2025.

The personal consumption expenditures price index rose 0.3% in December, matching a Dow Jones consensus estimate. The benchmark, the Fed's preferred inflation gauge, also rose 2.6% on an annualized basis, though that was an acceleration from the prior month's 2.4% advance.

The report comes after the Fed's latest policy meeting in which the central bank kept interest rates unchanged.

— Fred Imbert

Underperforming stocks that bounce back in January subsequently decline for the rest of the year, Wolfe Research finds

In a Friday note to clients, Wolfe Research found that stocks subject to the January bounce subsequently decline in the months to follow.

"The so-called January effect/bounce has persisted for many years in which the prior years' worst performing stocks outperform in the new year as tax loss selling and window dressing abates," wrote chief investment strategist Chris Senyek. "Most interesting was the subsequent full year performance in such years for the prior years' worst performing stocks. After the muted January bounce, this cohort experienced middling performance and subsequently underperformed for the entire year."

Senyek added that a muted January bounce happened in the years in which the S&P 500 gained 10% or more in the previous year.

— Lisa Kailai Han

Piper Sandler downgrades Hershey and Mondelez on worsening cocoa cost outlook

Cocoa costs could weigh on shares of Hershey and Mondelez International over the next coming months, according to Piper Sandler.

Hershey and Mondelez fell around 1% and nearly 1%, respectively, in the premarket after the firm downgraded the former to underweight and the latter to neutral. Piper's updated price targets also reflect more than 21% downside for Hershey and almost 8% upside for Mondelez from Thursday's close.

"We recently updated our model for incremental cocoa pressure, but the cocoa outlook has already worsened since then," analyst Michael Lavery wrote in a Thursday note. "Cocoa futures prices remain elevated after futures rose sharply in the last few weeks, and key indicators point to sustained pressure for 2025 and into 2026."

Both stocks are on pace to close out the first month of 2025 in negative territory, underperforming the broader market. Hershey has seen month-to-date losses of around 10%, while Mondelez has fallen more than 2% during the same period.

— Sean Conlon

Exxon Mobil reports better-than-expected earnings

Exxon Mobil gas station on Rhode Island Avenue in Washington, D.C., on Nov. 26, 2024.
Andrew Harnik | Getty Images
Exxon Mobil gas station on Rhode Island Avenue in Washington, D.C., on Nov. 26, 2024.

Exxon Mobil reported fourth-quarter earnings that beat analysts' expectations.

The energy giant earned $1.67 per share, excluding certain items, beating a FactSet estimate of $1.55 per share. Revenue, however, came in at $83.43 billion, below the consensus forecast of $86.33 billion.

Shares were little changed in the premarket.

— Fred Imbert

Deckers shares drop despite earnings beat

Deckers Brands at the New York Stock Exchange on Dec. 4, 2024.
NYSE
Deckers Brands at the New York Stock Exchange on Dec. 4, 2024.

Deckers shares were down 14% in the premarket despite the Hoka and Ugg parent reporting better-than-expected quarterly results.

The company earned $3 per share on revenue of $1.83 billion. Analysts polled by LSEG expected a profit of $2.56 per share on revenue of $1.73 billion. The company raised its full-year earnings guidance as well.

"F'Q3 marked another strong beat, with UGG seeing strong 16% growth in its most important season, balanced across wholesale and DTC, while maintaining robust full-price selling. However, investors are rattled by the light F'Q4 guide, which implies revenues turning negative for the first time since F'19, plus meaningful margin compression. To a lesser extent, there is also likely some skittishness around domestic sales slowing (11.5% from 14% in Q3) and HOKA coming ~in-line vs. its typical pattern of beating," BTIG analyst Janine Stichter, who has a neutral rating, wrote to clients.

— Fred Imbert

Asia-Pacific markets mostly rise after Wall Street gains overnight

Asia markets mostly rose Friday after Wall Street rose overnight as investors assessed Big Tech earnings.

Japan's benchmark Nikkei 225 and Topix advanced for the third straight day. The Nikkei 225 gained 0.15% to close at 39,572.49, while the broader Topix index was up 0.24% to close at 2,788.66.

South Korea's Kospi retreated 0.77% to end the day at 2,517.37, while the small-cap Kosdaq closed flat at 728.29, after a four-day break.

Over in Australia, the S&P/ASX 200 rose for the third consecutive day to close at an all-time high. The index climbed 0.45% to 8,532.30.

Meanwhile, Indian stocks were trading higher ahead of the country's Union Budget on Saturday. The benchmark Nifty 50 had gained 1.18%, while the BSE Sensex index advanced 0.94% as of 1.30 p.m. local time.

— Amala Balakrishner

Europe stocks open higher

European stock markets opened higher on Friday as investors digested the European Central Bank's fifth rate cut since June 2024, with the Stoxx 600 index up 0.39% at 9 a.m. in London.

Health care and technology led sector gains, at 0.73% and 0.62%, respectively.

The U.K.'s FTSE 100 rose 0.39%, while France's CAC 40 was up 0.35% and Germany's DAX was up 0.08%.

— Sawdah Bhaimiya

Where stocks stand for week, month

Friday marks the end of both the trading week and month. Here's where the major indexes stand:

  • The Dow: up 1% on the week, up 5.5% on the month
  • The S&P 500: down 0.5% on the week, up 3.2% on the month
  • The Nasdaq Composite: down 1.4% on the week, up 1.9% on the month

— Alex Harring

AI investing crowding exacerbated DeepSeek meltdown

Andrey Rudakov | Bloomberg | Getty Images

The race to invest in artificial intelligence assets exacerbated Monday's DeepSeek fallout, according to Bank of America.

"Funds piled into AI stocks last year, likely contributing to the outsized reactions we saw in response to DeepSeek," wrote strategist Savita Subramanian. "AI/tech companies with the biggest increase in ownership breadth over the last year were hit hardest by the headline."

Specifically, Subramanian pointed to semiconductor manufacturer Broadcom as an example.

"AVGO, which plummeted 17% on Monday, tops our list of stocks with the biggest increases in ownership breadth last year: 56% of US large cap funds owned the stock at the end of 2024 vs. just 38% at the end of 2023," she wrote.

— Lisa Kailai Han

See the stocks moving after hours

These are some of the stocks making notable moves in extended trading on Thursday:

  • Apple — Shares climbed almost 3% as investors analyzed the personal technology giant's earnings report, with services revenue appearing to take center stage over iPhone sales.
  • Intel — Shares rose more than 3% after the chipmaker beat expectations on both lines for the fourth quarter. However, guidance came in soft.
  • Atlassian — The enterprise technology stock soared more than 16% after exceeding consensus forecasts for earnings and issuing strong guidance.

— Alex Harring

S&P 500 futures are little changed

S&P 500 and Dow futures edged higher by around 0.1% each slightly after 6 p.m. ET. Nasdaq 100 futures, meanwhile, added 0.3%,

— Alex Harring

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