Wall Street closed with only slight gains after a volatile trading day as market participants weighed divergent forces. Concerns about the scale and economic effects of corporate investment in artificial intelligence sat alongside reports of positive movement in nuclear discussions between Iran and the United States, producing a cautious tone that left major indexes largely unchanged by the final bell.
Early weakness in technology names gave way to buying pressure as the session progressed. Chip and broader tech shares, which had dipped earlier in the day, staged reversals that helped stabilize the market. Investors appeared to use the pullback in technology as a buying opportunity rather than an occasion to rotate away from the sector.
Transport stocks moved higher, supported in part by advances in specific names such as Norwegian Cruise Line and Southwest Airlines. In the technology sector, Apple and Broadcom were among the contributors to gains by tech-heavy indexes.
Market breadth and sector performance
Performance across sectors was mixed. Real estate and financials outperformed, as did the Dow transports and airline shares. Conversely, energy, consumer staples and housing-related stocks lagged the broader market.
In currency markets, the U.S. dollar strengthened amid geopolitical developments, while the euro extended a run of losses for a sixth consecutive session versus the dollar. The Japanese yen eased for a second straight session after breaking a five-day winning streak.
Bond markets showed a mixed picture: U.S. Treasury yields moved in different directions across the curve as speculation about the timing and scale of Federal Reserve rate cuts continued to influence demand for government paper.
Commodity prices also reacted to a subtle shift in geopolitical tensions. A perceived easing of supply concerns and a reduced need for safe-haven assets contributed to declines in both crude oil and gold.
Notable talking points from the day
- Artificial intelligence and employment - Federal Reserve Governor Michael Barr and San Francisco Fed President Mary Daly each addressed the issue of AI, focusing on its potential consequences for the labor market and wider economic activity.
- Corporate activity - Warner Bros Discovery declined Paramount Skydance's revised bid of $30 per share. The target company, however, left room for a final bid by giving Paramount Skydance seven days to submit a "best and final" offer.
Key reads highlighted for further context
- Fed's Goolsbee: Several rate cuts possible this year if inflation gets back to 2%
- Dollar might be ready for a reprieve after a four-month decline
- Suffocating U.S. pressure could force Russian oil output cuts
- Canada's annual inflation cools in January on falling gasoline prices
- Quiet markets, loud diplomacy: All eyes on Iran
Events that could influence trading next
- United Kingdom CPI (January)
- United Kingdom PPI (January)
- France CPI (January)
- U.S. New Orders for Durable Goods (December)
- U.S. Housing Starts/Building Permits (December)
- U.S. Industrial Production/Capacity Utilization (January)
- Japan Machinery Orders (December)
- South Korea Trade Balance (January)
- Australia Employment Report (January)
- U.S. Federal Reserve Vice Chair Michelle Bowman participating in a discussion on "supervision and regulation"
This session’s action reflected a market balancing act: investors absorbed fresh commentary on the economic implications of AI while also digesting diplomatic signals that could alter geopolitical risk assessments. With several economic releases and central bank-related appearances scheduled, traders will have further data points to parse in the coming days.