Wall Street drifts in mixed trading as Intel tumbles
U.S. stocks were mixed Friday with the S&P 500 flat and the Dow lower, after Intel’s weak quarterly guidance and a week of sharp swings in bonds and currencies left investors cautious.
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By Torontoer Staff
U.S. stocks traded mixed on Friday as a week of sharp moves gave way to a quieter finish. The S&P 500 was essentially unchanged in morning trading and on track for a second straight modest weekly loss, the Dow fell about 0.5 per cent and the Nasdaq was slightly higher.
A steep drop in Intel weighed on the market after the chip maker reported stronger results for the end of 2025 but issued revenue guidance for the first quarter that fell short of Wall Street expectations.
Intel’s forecast drags chip stocks
Intel shares plunged about 15.6 per cent after the company said supplies are constraining the industry and that available supply should hit a bottom early this year before improving in spring and beyond. Investors focused on the near-term outlook rather than the quarter that beat expectations.
Shortages of supplies are affecting the entire industry, and available supply should hit a bottom early this year before improving in the spring and beyond.
David Zinsner, Intel chief financial officer
Chief executive Lip-Bu Tan highlighted long-term opportunities tied to artificial intelligence, but the guidance shortfall pushed the stock sharply lower and pulled down parts of the broader market.
Bond and currency moves calm after early-week swings
Markets showed more modest moves in Treasuries and foreign exchange on Friday after a volatile start to the week. Earlier swings were driven in part by headlines about possible U.S. tariffs on European countries tied to a dispute over Greenland, which prompted a flight from some U.S. assets and pushed Treasury yields higher.
I have reached the framework of a future deal with respect to Greenland, and I have called off the tariffs.
President Donald Trump
After the threat was scaled back, yields eased a touch and the dollar steadied. Investors also showed demand for safer assets, with gold rising as some portfolio managers sought protection amid lingering geopolitical and policy uncertainty.
Corporate movers on the day
Capital One Financial slid about 4.3 per cent after reporting weaker profit for the end of 2025 and announcing a US$5.15-billion purchase of Brex, a business-focused corporate card issuer, in cash and stock.
Oil services firm SLB rose roughly 1.7 per cent after reporting a stronger quarterly profit than analysts expected and raising its dividend by 3.5 per cent. CEO Olivier Le Peuch said revenue improved across all four of the company’s geographies from the prior quarter, the first time that has happened since spring 2024.
Revenue improved from the prior quarter across all four geographies for the first time since the spring of 2024.
Olivier Le Peuch, SLB chief executive
Railroad CSX climbed nearly 3.9 per cent despite reporting a weaker profit, after analysts focused on the company’s outlook for how much operating profit it expects to retain from each US$1 of revenue in 2026.
Data on inflation expectations and activity
Treasury yields eased partly on a University of Michigan survey that showed U.S. consumers’ one-year inflation expectations improved to 4 per cent, the lowest reading in a year, though still above the Federal Reserve’s 2 per cent target. Improved expectations can reduce the risk of a self-reinforcing inflation cycle.
A preliminary reading from S&P Global also suggested continued growth in U.S. business activity, adding to signs that the economy is still expanding despite mixed corporate results and elevated prices.
Overseas markets and central banks
Indexes in Europe slipped on Friday after gains across much of Asia earlier in the session. Japan’s Nikkei 225 rose about 0.3 per cent after the Bank of Japan left its key interest rate unchanged, following a December move that raised the policy rate to 0.75 per cent.
Global markets had calmed after a midweek surge in long-term Japanese government bond yields, which was initially sparked by investor concern about policy moves that could add to Japan’s large government debt burden.
What investors are watching next
- Corporate earnings and first-quarter guidance after Intel’s cautious outlook highlighted sensitivity to supply-chain dynamics
- Inflation readings and consumer expectations that could influence Federal Reserve policy expectations
- Any further geopolitical headlines that could reintroduce volatility in currencies and Treasuries
Markets finished the week with mixed signals: modest relief in bond markets and some stability abroad, but ongoing corporate guidance risks and geopolitical noise that could keep investors cautious entering next week.
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