US shares finish week with losses
Date
1/26/2025 2:21:15 AM
(MENAFN) U.S. Stocks ended the final trading day of the week with losses as uncertainties surrounding President Donald Trump’s tariff policies persisted. Market sentiment remained cautious, reflecting growing concerns about inflation and economic challenges. The Consumer Confidence index declined for the first time in six months, largely due to worries about the impact of unemployment and potential tariffs on rising inflation rates. These factors continued to weigh on investor confidence as the market assessed potential economic consequences.
Inflation expectations saw a notable increase in January, with consumers’ short-term outlook rising from 2.8 percent to 3.3 percent, marking the highest level since May. Long-term inflation expectations also climbed from 3 percent to 3.2 percent. Economic indicators presented a mixed picture, as the manufacturing sector’s Purchasing Managers Index (PMI) rose by 0.7 points to 50.1, exceeding market forecasts, while the service sector PMI fell by four points to 52.8, missing expectations. These contrasting trends highlighted ongoing uncertainties within the economy.
The housing market showed some recovery, as sales of existing homes increased by 2.2 percent in December, reaching their highest level since February of last year. However, the broader housing sector continued to struggle throughout 2024, plagued by high mortgage interest rates and elevated housing prices, pushing annual sales to their lowest since 1995.
Corporate earnings also drew investor attention. Boeing announced it anticipated a fourth-quarter loss, citing worker strikes, rising expenses in defense, space, and security programs, as well as costs associated with layoffs. The company’s stock declined 1.3 percent ahead of its earnings release next week. Similarly, shares of American Express dropped 1.3 percent, while Verizon saw its stock rise 0.9 percent after exceeding expectations for subscriber growth in the fourth quarter.
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