NEW YORK, Jan. 24 (Xinhua) -- U.S. stocks retreated on Friday, pausing a recent rally as investors assessed a new wave of corporate earnings and U.S. President Donald Trump's signals of a potentially softer approach to China tariffs.
The Dow Jones Industrial Average fell 140.82 points, or 0.32 percent, to 44,424.25. The S&P 500 sank 17.47 points, or 0.29 percent, to 6,101.24. The Nasdaq Composite Index shed 99.38 points, or 0.50 percent, to 19,954.3.
Six of the 11 primary S&P 500 sectors ended in green, with communication services and utilities leading the gainers by going up 1.09 percent and 1.07 percent, respectively. Meanwhile, technology and energy led the laggards by dropping 1.09 percent and 0.98 percent, respectively.
S&P Global's manufacturing purchasing managers' index (PMI) climbed to 50.1 in January, up from December's 49.4, marking a seven-month high and signaling a potential stabilization in the manufacturing sector.
"U.S. businesses are starting 2025 in an upbeat mood on hopes that the new administration will help drive stronger economic growth," Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a release.
Despite Friday's decline, optimism surrounding Trump's pro-business policies has driven risk assets higher throughout the week, fueled by his inauguration and promises of economic growth. "So far, markets have reacted to every statement made by the President, even those that should not have any impact," said Mark Malek, chief investment officer at Siebert. "This shows that traders have not yet settled into their pace."
Beyond politics, market participants kept an eye on corporate news and earnings reports. Next week, attention will turn to a trio of tech giants -- Microsoft, Meta, and Apple -- as they report earnings. These reports will provide the first opportunity for tech executives to discuss Trump's agenda and its potential impact on their businesses.
