(Jan 23): US equities slipped at the close of a volatile stretch that’s set the S&P 500 up for its second straight weekly decline as investors recalibrated, turning their attention back to earnings and monetary policy after a burst of geopolitical noise.
The S&P 500 and the Nasdaq 100 both slid around 0.3% as of 9.38am in New York. The Russell 2000 Index declined 0.6%. Markets showed little appetite to chase risk even as concerns around new tariffs on European goods faded. Instead, traders focused on the durability of corporate profit growth.
Shares of chipmakers Nvidia Corp and Advanced Micro Devices Inc defied the slump, rising after Chinese officials were said to have told the country’s largest tech firms, including Alibaba Group Holding Ltd, they can prepare orders for Nvidia Corp’s H200 AI chips. The discussions suggest Beijing is close to formally approving imports of components essential to running artificial intelligence.
Shares of Intel Corp sank 14% after the maker of personal computer processors’ chief executive officer struck a cautious tone on earnings and flagged persistent manufacturing setbacks.
Flows data demonstrated the shift away from US assets. Investors pulled nearly US$17 billion from US-focused equity funds in the latest week, according to Bank of America Corp, while allocations to Europe, Japan and emerging markets continued to accelerate. The US$134 billion iShares Core MSCI Emerging Markets ETF was headed for its largest monthly inflow since its 2012 launch.
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Geopolitics remained a background risk. US officials are seeking to revise defence arrangements with Denmark to expand military flexibility in Greenland, people familiar with the matter said.
President Donald Trump also said he has narrowed his shortlist for the next Federal Reserve chair, a decision closely watched for its potential market impact.
Corporate developments added to the mixed picture. Amazon.com Inc is preparing further corporate job cuts, while Apple Inc accused European regulators of delaying changes to its app policies. And TikTok and its Chinese parent ByteDance Ltd have closed a long-awaited deal to transfer parts of their US operations to American investors, securing the popular video app’s future in the US and avoiding a nationwide ban.
See also: US stocks rise as traders look beyond new Washington risks
In earnings, Capital One Financial Corp shares fell after the bank reported earnings for the fourth quarter that missed the average analyst estimate, driven by higher-than-expected costs. The firm also said it agreed to acquire Brex. Alaska Air Group Inc shares declined on the carrier’s disappointing full-year earnings guidance. And CSX Corp shares rose after the railroad gave 2026 forecasts.
Looking ahead, the focus shifts to a pivotal week for earnings and economic data, with companies representing more than a third of the S&P 500’s market value due to report.
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