Stocks on Wall Street finished a bit lower on Friday, closing out the first week of corporate earnings season with markets hovering near record highs.
The day's unsteady trading capped a week of similar movements for major indexes, as investors digested profit reports from banks and updates on inflation.
The S&P 500 declined 4.46 points, or 0.1%, to 6,940.01, remaining just below the record it set on Monday. The Dow Jones Industrial Average dropped 83.11 points, or 0.2%, to 49,359.33. The Nasdaq composite fell 14.63 points, or 0.1%, to 23,515.39. All three indexes recorded losses for the week.
Smaller company stocks performed slightly better. The Russell 2000 managed a 0.1% gain, while also securing a 2% weekly increase.
Technology stocks were the primary drivers behind the market's movements for much of the day. Several large technology stocks posted strong gains, helping to counterbalance losses in other sectors.
Broadcom advanced 2.5% and Micron Technology surged 7.8%. These semiconductor companies are among several Big Tech firms with significant valuations that frequently influence the market's direction.
A number of regional U.S. banks reported earnings following mixed results from larger institutions. Pittsburgh-based PNC jumped 3.8% after exceeding Wall Street's fourth-quarter targets. However, Regions Financial fell 2.6% after reporting results that missed forecasts.
Outside the banking sector, transport company J.B. Hunt Transport Services declined 1% after reporting quarterly financial results that were mixed.
This latest batch of corporate earnings updates could provide Wall Street with clearer insights into consumer spending and business operations amid economic concerns related to inflation and tariffs. Investors are closely examining technology sector results to assess whether high stock prices driven by enthusiasm for artificial intelligence are warranted.
"Despite the strong start to 2026, we would not be surprised if markets experience volatility in the coming weeks as fourth quarter earnings progress and the threat of escalating geopolitical tensions remains," wrote Doug Beath, global equity strategist at Wells Fargo Investment Institute, in a note to investors.
Wall Street will review a broader range of earnings next week from airlines, industrial companies, and technology firms. United Airlines, 3M, and Intel are all scheduled to release their quarterly earnings results.
Crude oil prices increased after a sharp decline on Thursday. The price of U.S. crude oil rose 0.4% to $59.44, while Brent crude, the international standard, climbed 0.6% to $64.13. Oil prices have been fluctuating amid widespread protests in Iran against the country's leadership and President Donald Trump's warnings that the U.S. "will come to their rescue."
Gold prices, which have also been volatile this week, fell. Prices for the precious metal, often seen as a safe haven during economic and geopolitical uncertainty, dropped 0.6%, but remain up more than 5% so far in January.
Treasury yields moved higher in the bond market. The yield on the 10-year Treasury rose to 4.23% from 4.17% late Thursday. The two-year Treasury yield, which more closely follows expectations for Federal Reserve actions, increased to 3.60% from 3.57% late Thursday.
The Federal Reserve's next policy meeting on interest rates is in two weeks, and Wall Street expects it to maintain the current benchmark rate. The central bank is attempting to balance a slowing jobs market with persistently high inflation. Inflation updates this week showed prices remain above the Fed's 2% target.
The U.S. central bank will receive another inflation update next week when the government releases the personal consumption expenditures price index, or PCE, the Fed's preferred inflation measure.
European markets declined, while Asian markets were mixed. Taiwan's benchmark index rose 1.9% after its government signed a trade deal with the U.S. China, which claims the self-governed island as its territory, protested the agreement.
The deal with Taiwan occurs amid an ongoing trade war between the U.S. and much of the world. Tariff uncertainties have raised concerns about inflation and economic harm due to higher costs for businesses and consumers.
Canada is the latest to adjust its partnerships due to this uncertainty. It has agreed to reduce its 100% tariff on Chinese electric cars in exchange for lower tariffs on Canadian farm products, marking a break with the U.S. Tesla fell 0.2% and Rivian declined 2.3%.