S&P 500 Steady: Meta Rises on AI Plans, Boeing Warns of Loss, Economic Data Mixed

S&P 500, Nasdaq Steady at Mid-Session as Investors Digest Data; Boeing Dips

U.S. stock indexes were largely unchanged midway through Friday’s session, with the S&P 500 and Nasdaq struggling for direction as traders evaluated fresh economic data and corporate updates. Boeing shares declined after warning of a quarterly loss, while positive moves in utilities and real estate offered support to the broader market.

How Did Economic Data Shape Sentiment?

The latest economic readings offered a mixed picture. Business activity hit a nine-month low in January, according to S&P Global, with the services PMI slipping to 52.8, falling short of forecasts. Manufacturing activity showed resilience, climbing to 50.2 and signaling expansion for the first time in months. Separately, the University of Michigan’s consumer sentiment index fell to 71.1, down from an earlier estimate of 73.2, reflecting growing consumer caution.

Investors are also turning their focus to next week’s Federal Reserve meeting. While no rate change is expected, futures markets now indicate rising odds of the Fed’s first rate cut arriving in June.

Which Sectors Are Leading or Lagging?

Among the 11 S&P 500 sectors, eight traded higher mid-session. Utilities outperformed with a 1% gain, while real estate rose 0.8%. Technology lagged, shedding 0.5%, with energy also under pressure as crude oil prices slipped.

Biotech stocks were a bright spot this week, with the SPDR S&P Biotech ETF (XBI) up 5.5%, on pace for its best week since mid-2024. Moderna shares have surged over 25% since Monday, benefiting from strong investor interest.

How Are Major Stocks Moving?

Boeing dipped 0.5% after issuing a quarterly loss warning tied to higher costs. The planemaker, set to release earnings next week, remains under scrutiny following a tough 2024. Meanwhile, American Express reported a 12% rise in quarterly profit, but its stock dropped 2.7% as investors reacted to cautious guidance.

Meta Platforms added 1% after CEO Mark Zuckerberg highlighted ambitious AI investment plans, including a $60 billion infrastructure buildout this year. Verizon gained 0.8% following better-than-expected subscriber growth in its quarterly report.

What’s Next for Traders to Watch?

With Wall Street indexes set to close the week near neutral territory, attention shifts to next week’s Federal Reserve decision and corporate earnings from major players like Boeing and Apple. Traders will also monitor further economic releases, including housing and employment data, for clues on economic momentum.

Near-term market sentiment remains cautious, with mixed economic data and corporate earnings tempering investor enthusiasm. Expect volatility to persist as traders digest the evolving outlook for growth and interest rates.

More Information in our Economic Calendar.