The major U.S. stock indexes experienced a slight decline, halting their four-day streak of gains. Nevertheless, they secured their second weekly increase in a row following a week where President Donald Trump adopted a more moderate stance on tariffs. During his first week back at the White House, Trump also advocated for lower interest rates and reduced oil prices.
On February 1, Trump proposed imposing a 25% tariff on goods from Canada and Mexico, a delay compared to his initial vow to implement tariffs on his first day in office. He also suggested a 10% tariff on all imports from China, which is significantly lower than the 60% he had previously suggested during his campaign.
“Investors are now sensing that Trump’s tariff plans might not be as high on his agenda as previously thought, and could ultimately be less severe than originally anticipated,” explained Matthew Ryan, head of market strategy at the global financial services firm Ebury.
In addition to influencing stock movements, Trump addressed global leaders in Davos, Switzerland, asserting his intent to push for lower interest rates and request oil-producing nations, including Saudi Arabia, to reduce oil prices. Subsequently, oil prices dropped slightly by 0.09% to $74.55 per barrel.
The broader S&P 500 index fell by 0.29%, or 17.47 points, closing at 6,101.24, which was below its record closing high of 6,118.71 and its intraday high of 6,128.18 recorded earlier that day. The Dow Jones Industrial Average decreased by 0.32%, losing 140.82 points to settle at 44,424.25, while the tech-centric Nasdaq Composite dipped by 0.5%, or 99.38 points, ending at 19,954.30. The yield on the benchmark 10-year Treasury note also fell to 4.617%.
Interest Rates
Although President Trump expressed his desire to “demand” lower interest rates, it’s important to remember that the Federal Reserve, which is responsible for setting monetary policy, operates independently from the government. The Fed is scheduled to meet next week, with a policy announcement expected on Wednesday. Given the recent strong economic data, including an impressive December jobs report, market participants, as tracked by the CME’s FedWatch tool, see virtually no chance of a rate cut. The Fed’s current short-term interest rate target is between 4.25% and 4.5%.
Corporate News Highlights
With tariff concerns temporarily subdued, investors are shifting their focus back to corporate developments, particularly quarterly earnings reports. Highlights from today’s corporate news include:
- Verizon reported earnings that surpassed analysts’ expectations for the last quarter of the previous year, along with its strongest postpaid phone subscriber growth in five years, which exceeded analysts’ forecasts. The company’s shares closed up nearly 1%.
- Shares of Novo Nordisk surged approximately 8.5% following positive early results from its once-weekly amycretin drug for obesity.
- Twilio provided an earnings forecast that was better than expected, causing its shares to soar by 20%.
- Texas Instruments anticipated that its first-quarter profits would fall short of analysts’ expectations due to inventory buildup in its key automotive and industrial sectors, leading to a 7.5% drop in its shares, marking its worst day since March 2020.
- CSX’s shares fell nearly 3% after the transportation company reported a decline in its fourth-quarter results, primarily due to significant drops in coal and fuel surcharge revenues.
- Intuitive Surgical shares tumbled 4.4%, marking its worst day since October 2023, after the company revised its gross profit margin outlook downward.
- Boeing’s shares declined by 1.37% following a warning of a larger-than-expected loss for the fourth quarter, attributed to an extended strike, charges related to U.S. government projects, and costs associated with significant job cuts.
Bitcoin’s Fluctuating Fortunes
Bitcoin prices have been fluctuating since reaching a record high just before Trump’s inauguration, driven by speculation that he would sign an executive order to establish a national bitcoin reserve. However, Trump did not follow through with this, which has kept Bitcoin prices within a specific range. The cryptocurrency recently increased by 1.03%, trading at $105,154.50.
While Trump has committed to ending the Securities and Exchange Commission’s crackdown on the crypto industry and appointed the crypto-friendly Paul Atkins to lead the commission, he also signed an executive order to form a crypto working group headed by the White House crypto and artificial intelligence czar, David Sacks. Despite these actions, they still fall short of establishing the promised national strategic crypto reserve, according to market observers.
(This story was updated with new information.)

Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.