NextFin News -
Market close
The U.S. stock market closed the first trading day of February with a broadly constructive tone as investors looked past recent volatility in precious metals and crypto. The Dow outpaced peers, while the S&P 500 and Nasdaq posted modest gains amid cautious optimism around earnings and a still-tight monetary policy backdrop.
Indexes
The S&P 500 closed at 6,976.44, up 37.41 points (+0.54%). The Nasdaq finished at 23,592.11, up 130.29 points (+0.56%). The Dow Jones Industrial Average led the session, closing at 49,407.66, a rise of 515.19 points (+1.05%).
Sector performance
Volume was concentrated in large-cap and megacap tech names, while market breadth favored cyclicals and financials. Sector action showed rotation into industrials and defensive staples:
- Industrials (XLI): +1.28%
- Consumer staples (XLP): +1.19%
- Financials (XLF): +1.07%
- Technology (XLK): +0.95%
- Energy (XLE): -1.94% (weakest)
- Utilities (XLU): -1.46%
Falling oil prices and profit-taking in yield-sensitive names weighed on energy and utilities, while cyclicals and staples outperformed.
Notable movers
- Apple (AAPL): $269.96, up 4.04% (+$10.48); volume 73,365,577. Rally followed stronger-than-expected fiscal Q1 results and upbeat commentary on iPhone and services demand.
- Tesla (TSLA): $421.91, down 1.98% (-$8.50); volume 56,882,227.
- Nvidia (NVDA): $185.61, down 2.89% (-$5.52); volume 160,517,745. Headlines renewed questions around strategic AI investments and a potential OpenAI-related deal.
- Microsoft (MSFT): $423.37, down 1.61% (-$6.92); volume 41,693,860. Investors are parsing elevated AI-related spending after the recent report.
- Amazon (AMZN): $242.91, up 1.51% (+$3.61); volume 37,081,825.
- Alphabet (GOOGL): $343.69, up 1.68% (+$5.69); volume 31,576,584.
- Meta (META): $706.41, down 1.41% (-$10.09); volume 14,258,582.
Corporate news & earnings
Corporate newsflow and earnings remained primary market drivers. Apple reported stronger-than-expected fiscal Q1 results and raised near-term revenue projections for some products and services, supporting its stock. Microsoft’s earnings cycle has contributed to volatility as investors balance robust cloud growth against higher AI-related costs. Markets rewarded companies showing resilient demand and punished those signaling margin pressure or elevated capex.
Macro & policy
Latest CPI reads and consensus tracking show inflation trending closer to the Fed's target band: December CPI was around 2.7% year-over-year with core readings near 2.6%, while Cleveland Fed nowcasts put January CPI year-over-year nearer to 2.36%. These slower-but-still-elevated prints support a gradual approach to policy easing.
The Federal Reserve left its policy rate unchanged at a target range of 3.50% - 3.75% at the January meeting and signaled a pause after three cuts in 2025. The post-meeting statement noted solid growth and labor-market stabilization while flagging that inflation remains somewhat elevated; there were some dissents in favor of an immediate cut, but the committee's tone was cautious.
Labor market
Labor-market indicators were described as mixed: job gains have moderated compared with 2024, but unemployment measures show signs of stabilization. Several large institutions described activity as "solid," and commentary from banks highlighted the potential for more measured rate cuts later in 2026 if inflation continues to improve.
Geopolitics
Trade-policy frictions and U.S.-China tensions remain an undercurrent, influencing sentiment and supply-chain risk premiums. Reports noted ongoing trade realignments among major economies and continued negotiation among allies, which can affect industrial and technology supply chains. There were no major new SEC regulatory announcements highlighted in today's headlines.
Investor sentiment & outlook
Investor sentiment was constructive but cautious: equities advanced on strong earnings beats and rotation into cyclicals and staples, while commodity volatility (notably precious metals and oil) has prompted episodic risk-off responses. Markets will remain sensitive to incoming economic data, the Fed's communications, and the ongoing company-by-company earnings cadence in the days ahead.
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