After failing to sustain an early move to the upside, stocks have shown a lack of direction over the course of the trading session on Friday. The major averages pulled back off their highs of the session and have recently been bouncing back and forth across the unchanged line.
Currently, the major averages are narrowly mixed. While the Dow is down 27.96 points or 0.1 percent at 49,414.48, the S&P 500 is up 6.07 points or 0.1 percent at 6,950.54 and the Nasdaq is up 18.79 points or 0.1 percent at 23,548.81.
The choppy trading on Wall Street comes following remarks from President Doanld Trump suggesting National Economic Council Director Kevin Hassett may not be his choice to become the next Federal Reserve chair.
“I see Kevin’s in the audience, and I just want to thank you. You ?were fantastic on television today,” Trump said. “I actually want to keep you where you are, if you want to know the truth.”
Hassett had been seen as the frontrunner to replace Fed Chair Jerome Powell, whose term expires in May, but prediction markets now show former Fed Governor Kevin Warsh has surged into the lead following Trump’s remarks.
The latest developments may have led to some uncertainty about Trump’s pick for Fed chair and the outlook for interest rates.
Traders may also be reluctant to make significant moves as they keep an eye on rising geopolitical tensions around the world.
Trump’s threats to take control of Greenland continue to attract attention, with the president suggesting he may impose tariffs on countries that don’t go along with his plans for the territory.
Traders also continue to keep an eye on developments in Venezuela, political unrest in Iran and the ongoing Russia-Ukraine war.
In U.S. economic news, the Federal Reserve released a report showing industrial production grew by much more than expected in the month of December.
The Fed said industrial production climbed by 0.4 percent in December, matching an upwardly revised increase in November.
Economists had expected industrial production to inch up by 0.1 percent compared to the 0.2 percent uptick originally reported for the previous month.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors are showing only modest moves on the day.
Semiconductor stocks are extending yesterday’s rally, however, with the Philadelphia Semiconductor index climbing by 1.4 percent to a new record intraday high.
On the other hand, steel stocks have moved notably lower, dragging the NYSE Arca Steel Index down by 1.4 percent. The index is pulling back off its best closing level in over seventeen years.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Friday. Japan’s Nikkei 225 Index and China’s Shanghai Composite Index both dipped by 0.3 percent, while South Korea’s Kospi advanced by 0.9 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index is down by 0.8 percent, the German DAX Index is down by 0.3 percent and the U.K.’s FTSE 100 Index is down by 0.1 percent.
In the bond market, treasuries have moved notably lower over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.1 basis points at 4.211 percent.
Business News
U.S. Stocks Turning In Lackluster Performance After Initial Advance
2026-01-16 16:40:48
