US Stocks Slip Further as Intel's Weak Guidance Weighs on Market
The US stock market continued its downturn Friday, led by a sharp decline in chipmaker Intel. The S&P 500 fell 0.2%, bringing it on track for a second consecutive week of modest losses. Meanwhile, the Dow Jones Industrial Average dropped 252 points, or 0.5%, and the Nasdaq composite slipped 0.1%.
Intel's stock took a hit after the company reported better-than-expected earnings for the fourth quarter but fell short of analyst expectations for its first-quarter forecast. The chipmaker attributed the disappointing guidance to supply chain shortages that are affecting the entire industry, with CEO Lip-Bu Tan highlighting the opportunities created by the growing use of artificial intelligence.
The market's decline was not limited to Intel, however. Capital One Financial plummeted 3.8% after reporting a weaker profit than expected for the fourth quarter. In contrast, oil field services provider SLB surged 4.1% on stronger-than-expected earnings and an increased dividend.
The rally in US Treasury bond yields also came under pressure as investors continued to seek safer assets amid ongoing uncertainty. The yield on the 10-year Treasury edged down to 4.25%, though remaining above pre-pandemic levels.
A global economic outlook that remains clouded by risks from inflation, trade, and supply chain disruptions continues to weigh on investor sentiment. As President Donald Trump earlier this week hinted at imposing tariffs on European countries over Greenland, the value of the US dollar fell against other currencies. Gold prices also rose as investors sought safer assets.
Despite some recent market volatility, the stock markets in Japan and Europe remained relatively calm Friday. The Bank of Japan kept its key interest rate unchanged, while Japanese Prime Minister Sanae Takaichi's comments on economic policy did not spark a significant reaction in global markets.
The US stock market continued its downturn Friday, led by a sharp decline in chipmaker Intel. The S&P 500 fell 0.2%, bringing it on track for a second consecutive week of modest losses. Meanwhile, the Dow Jones Industrial Average dropped 252 points, or 0.5%, and the Nasdaq composite slipped 0.1%.
Intel's stock took a hit after the company reported better-than-expected earnings for the fourth quarter but fell short of analyst expectations for its first-quarter forecast. The chipmaker attributed the disappointing guidance to supply chain shortages that are affecting the entire industry, with CEO Lip-Bu Tan highlighting the opportunities created by the growing use of artificial intelligence.
The market's decline was not limited to Intel, however. Capital One Financial plummeted 3.8% after reporting a weaker profit than expected for the fourth quarter. In contrast, oil field services provider SLB surged 4.1% on stronger-than-expected earnings and an increased dividend.
The rally in US Treasury bond yields also came under pressure as investors continued to seek safer assets amid ongoing uncertainty. The yield on the 10-year Treasury edged down to 4.25%, though remaining above pre-pandemic levels.
A global economic outlook that remains clouded by risks from inflation, trade, and supply chain disruptions continues to weigh on investor sentiment. As President Donald Trump earlier this week hinted at imposing tariffs on European countries over Greenland, the value of the US dollar fell against other currencies. Gold prices also rose as investors sought safer assets.
Despite some recent market volatility, the stock markets in Japan and Europe remained relatively calm Friday. The Bank of Japan kept its key interest rate unchanged, while Japanese Prime Minister Sanae Takaichi's comments on economic policy did not spark a significant reaction in global markets.
. And don't even get me started on Capital One, how are we gonna pay back all those student loans now? 
Meanwhile, SLB's surge was probably just a flash in the pan - what's going to happen when oil prices actually do drop? 
The 10-year Treasury yield might be edging down, but I'm still holding onto my bonds as a safe-haven strategy... good luck with that 
. Can't say I'm feeling optimistic about the US dollar's prospects either - Trump's just gonna keep messing it up 
And don't even get me started on Capital One Financial – they were like the awkward cousin at a family reunion... nobody wants to talk to them! 
On a more serious note (just for a sec, don't worry!), maybe we should all just invest in some calming essential oils instead of stocks 
.
. They're not alone in facing challenges – the whole chip industry is dealing with supply chain issues and uncertainty about what's next 
. It's like when you set goals for yourself, but then unexpected obstacles come up and you gotta adjust on the fly 
. The key is to stay flexible and keep your eyes on the bigger picture 
. Don't get caught up in short-term losses – think about how this is all gonna play out in the long run 
. And hey, even with those challenges, SLB's earnings are a great example of what can happen when you adapt to changes and focus on your strengths 
. So, let's take a deep breath, stay calm, and trust that we'll come out stronger on the other side 
Come on, Intel can't even give decent guidance? It's like they're trying to tank the stock market or something 
. I mean, supply chain shortages are a thing, but is it really that hard for them to predict their own earnings? 
. At some point, investors gotta be like "hold up, we're not buying into this anymore" 
.
It's like when Tony Stark tries to make a suit out of scraps and ends up making a mess in Iron Man 
. Anyway, gotta stay chill and see how this plays out 
.
. It's not all doom and gloom though - the fact that Japanese and European markets are remaining relatively calm is a good sign 
. Maybe we'll see some positivity from these countries' economic policies? Fingers crossed! 