4:05pm: In the red
US stocks remained under pressure on Friday afternoon as investors reacted to new data indicating slowing economic growth amid the continued conflict in the Middle East.
The Nasdaq fell 0.9% to 22,105 points, the S&P 500 was down 0.6% at 6,632 points, and the Dow Jones was down 0.3% at 46,558 points.
3:30pm: Proactive news headlines
- U.S. Global Investors (NASDAQ:GROW) announced it will continue its monthly dividend payments, highlighting its positioning amid ongoing geopolitical tensions in the Middle East following coordinated US and Israeli strikes on Iran.
- HIVE Digital Technologies Ltd (TSX-V:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) and AMC Robotics Corporation have announced a strategic collaboration aimed at supporting the development of artificial intelligence–driven robotics applications and related computing infrastructure.
- Highland Critical Minerals Corp (CSE:HLND, FRA:U8X) has launched a non-brokered flow-through private placement to raise up to C$400,000 to support exploration spending.
- Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, TSX-V:DGX) has announced a new development phase for its artificial intelligence infrastructure platform, US Data Centers (USDC), including the involvement of telecommunications executive Hans Vestberg as a co-founder and senior advisor.
- Abacus Global Management (NYSE:ABX) has agreed to acquire an approximately $53 million minority equity stake in wealth and asset manager Manning & Napier, as the alternative asset manager looks to expand distribution of its longevity-focused investment products.
2:00pm: Market movers
- HIVE Digital Technologies Ltd announced a strategic collaboration with AMC Robotics Corporation, under which the robotics firm is using HIVE’s GPU-based AI computing infrastructure to develop, test, and deploy artificial intelligence-driven robotics applications.
- Shares of Rubrik rose nearly 5% after the cloud data security company reported fiscal fourth-quarter and full-year 2026 results that beat expectations and issued stronger-than-forecast guidance for fiscal 2027.
- Ulta Beauty Inc shares fell about 8% after the retailer projected weaker-than-expected fiscal 2026 guidance despite reporting holiday-driven fourth-quarter revenue that topped Wall Street estimates.
11:50am: Fed's dual mandate under pressure
Next week, all eyes will be on the FOMC meeting, as rising stagflation risks put the Federal Reserve’s dual mandate under pressure.
"We expect the Committee to hold rates steady and emphasize optionality, with the updated SEP likely to show that expectations for slightly higher inflation and lower growth will net out to an unchanged policy path," analysts at Wells Fargo commented.
"Elsewhere, activity in interest rate sensitive sectors remains touch and go; we forecast industrial production slipped in February and new home sales rose in January."
11:05am: GDP shows slowdown
The first revision of Q4 GDP showed a major slowdown, complicating the Federal Reserve’s policy decisions.
Jeffrey Roach, Chief Economist at LPL Financial in Charlotte, said, “Investors need to see monthly prints stay consistently in the range of 0.1% and 0.2% before they can realistically believe inflation risks are mostly contained.”
Roach noted that underlying inflation pressures are likely to remain elevated in the coming months, influenced in part by disruptions from the war in the Middle East, and that the Fed’s upcoming Summary of Economic Projections may reflect heightened uncertainty on both inflation and employment.
10:00am: Positive start to Friday
US markets kicked off Friday on a positive note, with the Dow Jones Industrial Average climbing 166 points, or 0.4%, to 46,844. The S&P 500 and Nasdaq followed suit, each up 0.4%, while the Russell 2000 led the gains with a 0.9% jump.
Investors are digesting a mix of economic data that painted a slightly softer picture for the US economy at the start of the year. The Bureau of Economic Analysis revised fourth-quarter GDP growth to just 0.7%, down from the previously reported 1.4%, reflecting a noticeable slowdown from the robust 4.4% expansion seen in the third quarter of 2025.
Meanwhile, inflation measures remained in check. The January Personal Consumption Expenditures (PCE) index showed prices rising 0.3% month-over-month, keeping the Federal Reserve’s inflation gauges relatively stable—data that predates the outbreak of the Middle East conflict.
Crude oil prices eased Friday, with West Texas Intermediate falling 2% below $94 a barrel and Brent dipping just under $100 after touching that milestone earlier in the session. Labor market signals were mixed: job openings in January totaled 6.94 million, beating expectations, even as the pace of quits and layoffs remained muted.
With markets digesting a combination of slower economic growth, steady inflation, and softer energy prices, traders are cautiously optimistic heading into the weekend.
9:20am: PCE below estimates
Inflation in the United States came in largely in line with expectations in the latest data tied to the Federal Reserve’s preferred price gauge.
The Personal Consumption Expenditures (PCE) price index rose 2.8% year-over-year, slightly below estimates of 2.9%, while increasing 0.3% month-over-month, matching forecasts. Core PCE, which excludes food and energy, climbed 3.1% annually and 0.4% from the previous month, both in line with expectations.
Consumer activity remained steady. Personal spending increased 0.4% in February, slightly ahead of the 0.3% estimate, while personal income rose 0.4%, missing expectations for a 0.5% gain. Real personal spending, which adjusts for inflation, rose 0.1%, marginally above forecasts for a flat reading.
Separately, U.S. economic growth was revised lower, with fourth-quarter GDP adjusted down to an annualized 0.7%, below expectations for 1.4%, indicating weaker momentum in the closing months of the year.
8am: Dow Jones set to rise as oil cools off
Wall Street is expected to open higher after a volatile trading week as the conflict in the Middle East nears the end of its second week.
Futures for the Dow Jones are pointing to a 0.3% gain when the market opens, with those for the S&P 500 and the Nasdaq close behind.
After closing above $100 a barrel for the first time since August 2022, benchmark Brent crude futures have since cooled off.
Saxo Markets' Neil Wilson points out that crude oil prices dipped by around 2% after India stated it has an oil tanker moving out of the Strait of Hormuz. Brent crude slipped below $99 a barrel. WTI futures fell 2.2% to $93.64.
"Too early to comment or speculate on what this means, but markets are still very much trading the headlines and keen to latch on to any shred of good news," Wilson commented.
The recovery was mirrored in Europe: London's FTSE 100 erased its morning losses to trade about 0.2% firmer by lunchtime, Frankfurt's DAX also turned around to trade a few points higher, and the CAC 40 in Paris was flat.
Asian markets, meanwhile, closed lower, with Seoul’s Kospi down 1.7%, Tokyo's Nikkei falling 1.2%, the Hang Seng in Hong Kong losing 1%, and the SSE Composite in Shanghai closing 0.8% lower.