US stocks struggled for direction on Friday, with the S&P 500 finishing mostly flat, while the Nasdaq gained 0.4% and the Dow slipped 165 points. Retail sales fell 0.9% in January, the largest drop in a year, missing expectations and raising concerns over consumer spending. Despite this, markets held steady after a volatile week of policy shifts, including new tariff plans from President Trump and Ukraine peace talks. Investors welcomed a delay in reciprocal tariffs, helping stocks post solid weekly gains. Tech stocks led gains, while Consumer Staples and Health lagged. Among individual movers, Airbnb surged 14.4% on strong earnings, GameStop rallied 2.6% on bitcoin speculation. Moderna reversed earlier losses, gaining 3.3% after a wider-than-expected loss, while Eli Lilly dropped 3%. On the week, the S&P added 1%, the Dow gained 0.3% and the Nasdaq jumped 1.7%.
The DAX index was unable to rebound and closed about 0.4% down at 22,513 on Friday, easing from recent record highs and underperforming peers. Traders were caught between relief over Donald Trump's postponement of "reciprocal duties" and uncertainty over the peace negotiations in Ukraine. At the same time, the on-going earnings season continued to be closely monitored. Among individual stocks, Fresenius Medical Care led the losses, dropping nearly 5%, tracking a decline in shares of US-listed DaVita after the company issued weaker-than-expected guidance for 2025. On the opposite side, defence and auto stocks were the top performers. For the week, the index rose 3.3%, marking the sixth consecutive weekly gain.
The BSE Sensex finished about 0.3% lower at 75,939.2 on Friday, its lowest in over two weeks and extending a prolonged losing streak since early February. Investors continued to worry about the potential consequences of US tariffs on India's economy despite recent "productive" talks between PRIME MINISTER NARENDRA MODI and US PRESIDENT DONALD TRUMP. MODI on Thursday announced plans to double US-India bilateral trade to $500 billion by 2030 and finalize a trade agreement soon, focusing on boosting US imports of oil, gas, and military equipment, while also addressing illegal immigration. The inflationary effect of US tariffs may hinder the Fed's policy easing path, while also strengthening the dollar, which could lead to increased foreign outflows from India. On the corporate front, US-exposed drug makers saw the steepest drop, down more than 2%. For the week, the index posted a 2.5% slump, the first weekly decline in three weeks, amid concerns over a potential global trade war.
The Nikkei 225 Index declined 0.8% to close at 39,149 on Friday, ending a three-day rally as the yen rebounded sharply overnight. The currency’s rise followed expectations of a softer US PCE inflation reading and a delay in President Trump’s reciprocal tariffs. A stronger yen typically weighs on Japan’s export-driven industries and makes Japanese assets more expensive for foreign investors. Meanwhile, investors continued to navigate Japan's busy earnings season, which has yielded mixed results so far. Notable losses were seen in index heavyweights such as IHI Corp (-4.7%), Tokyo Electron (-2.1%), Fast Retailing (-1.6%), and Keyence (-1.2%). Meanwhile, Sony Group surged 8.65% after reporting a 37% increase in quarterly profits from its gaming unit and the sale of 9.4 million PlayStation 5 units. Despite Friday's dip, the Nikkei 225 gained 0.9% this week, snapping two consecutive weeks of losses.
