Today's Edition
(REUTERS)
Gold slowed and the dollar paused near a six-week high as major Wall Street indexes sagged on Friday, although chipmakers gained after a jittery week as traders bet the Federal Reserve would wait before cutting interest rates.
Gold slowed going into the weekend after a roaring ride on safe haven demand. Oil prices, however, rose as the market continued to fret about supply risks, even after US President Donald Trump dialled down talk of intervening to address protests in Iran.
Just two full trading weeks into 2026, investors have been presented with a global maelstrom including Trump's intervention in Venezuela, stated desire to take over Greenland, and threat to indict Fed chair Jerome Powell, which raised worries about central bank independence.
Stock traders have nonetheless jumped back into the AI trade, even as some buyers switch out of heavyweight tech names into smaller cap stocks in the hunt for value.
A proposed one-year cap on credit card interest rates weighed on lenders' shares and other markets during the week, despite strong quarterly showings from big US banks which gave some positive signs for the broader economy.
"Banks set up the week nicely to say the consumer is still spending and there's nothing to worry about yet. We will see if that is being translated into more consumption," said Jason Barsema, president of Halo Investing.
The S&P 500 was down 0.12% on Friday at 6,936.04 and the Nasdaq Composite fell 0.22% to 23,477.94.
The Dow Jones Industrial Average was 0.16% lower at 49,363.46, after punching out a fresh record close on Monday. US stocks overall were set for modest weekly losses.
The Martin Luther King Jr. Day holiday will keep US markets shut on Monday, but the earnings season romps along next week with results due from Netflix, Johnson & Johnson, and Intel.
The dollar oscillated between stronger and weaker positioning against the euro after reaching a six-week high on Thursday, but was poised for a third consecutive weekly gain.
Some of the dollar enthusiasm came from data showing unexpected strength in the US labour market, which delayed the prospect of further interest rate cuts. Markets are betting on a 20% chance of a Fed rate cut in March, down from roughly 50% a month ago.
Measured against a basket of currencies including the yen and the euro, the dollar rose 0.05% to 99.39, with the euro down 0.09% at $1.1595.
Japanese Finance Minister Satsuki Katayama put traders on alert for currency intervention when she would not rule out any options to counter weakness in the yen, including coordinated intervention with the United States.
The yen strengthened 0.33% to 158.13 per dollar.
Oil prices rose slightly as supply risks remained in focus but gains were short of the multi-month highs registered earlier in the week.
US crude rose 0.95% to $59.75 a barrel and Brent rose to $64.37 per barrel, up 0.96% on the day.
Analysts expect higher oil supply this year, which could put a cap on price rises.
Gold gave up its spot as the biggest trade in town, falling 1.05% to $4,566.36 an ounce.
Geopolitical and economic uncertainty are generally positive for gold, as investors seek safe havens. It is also priced in dollars, meaning strength in the US currency makes it more expensive for overseas buyers.
