US stocks: Dow ends lower, with S&P flat, as Intel's outlook weighs on risk appetite

Published Sat, Jan 24, 2026 · 08:02 AM

THE Dow Jones Industrial Average stumbled to a lower close on Friday (Jan 23), while the S&P 500 ended largely unchanged, as investors’ risk appetite was dimmed at the end of a topsy-turvy week by Intel’s plunge on a downbeat outlook.

All three Wall Street benchmarks had rebounded in the past two sessions following Tuesday’s sharp selloff triggered by US President Donald Trump’s threats to impose tariffs on European allies, an effort to pressure them to accept his claims to Greenland.

According to preliminary data, the S&P 500 gained 2.23 points, or 0.03 per cent, to end at 6,915.16 points, while the Nasdaq Composite gained 62.51 points, or 0.3 per cent, to 23,498.53. The Dow Jones Industrial Average fell 288.51 points, or 0.6 per cent, to 49,095.50.

Despite a somewhat limited pullback on the final trading day of a truncated week, investors appeared to remain confident that while geopolitical-induced volatility is a present danger, the overall state of the American economy continues to be robust.

“When we think about what it means from an investor’s standpoint, we feel pretty good about where we are today,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth.

He noted that volatility was expected this year, given the midterms later in 2026. However, corporate earnings are expected to continue to come in strong, and the economy is going along fine.

“We’re feeling pretty good, but mindful we might have some significant twists and turns throughout the rest of the year,” Blackwell added.

Mag 7 earnings test

One twist on Friday, which weighed on market sentiment, was chipmaker Intel. Its shares sank after the company forecast quarterly revenue and profit below market estimates, saying it struggled to satisfy demand for its server chips used in artificial intelligence (AI) data centers.

With many technology and semiconductor companies still trading at sky-high valuations, 2026 is viewed by many as the year where the huge excitement for the AI trend, and the huge amounts of capital expenditure to attain it, need to start showing up as corporate revenue.

This question will be front-and-center next week, when many of the so-called Magnificent Seven stocks, including Apple , Tesla and Microsoft, are set to report earnings.

Ahead of these numbers, megacaps were mixed on Friday. Tesla and Alphabet posted modest declines. Microsoft, Meta and Amazon rose. Nvidia gained after Bloomberg News reported Chinese officials have told Alibaba, Tencent and ByteDance they can prepare orders for Nvidia’s H200 AI chips.

Fed awaited

The Federal Reserve is expected to hold rates at 3.5 to 3.75 per cent next week, but investors will comb through the statement and Chair Jerome Powell’s remarks for signals on what is next. The CME Group’s FedWatch tool shows markets penciling in the first cut for June.

US economic signals were broadly steady to start the year.

Business activity held firm in January as firmer new orders helped offset a still-soft jobs picture, S&P Global’s flash PMI showed. Meanwhile, the University of Michigan survey showed consumer sentiment improving across the board this month. REUTERS