The S&P 500 (^GSPC 1.22%) edged up 0.03% to 6,915.16 in a choppy session, the Nasdaq Composite (^IXIC 1.46%) rose 0.28% to 23,501.24 on tech strength, while the Dow Jones Industrial Average (^DJI 1.24%) fell 0.58% to 49,098.70, pressured by Intel’s slide.
Market movers
A steep post-earnings drop in Intel (INTC 5.03%) weighed heavily on the Dow and broader tech sentiment, while gains in Nvidia (NVDA 1.21%), Microsoft (MSFT 0.15%), Meta Platforms (META 2.41%), and a more than 5% jump in Fortinet (FTNT +0.61%) helped power the Nasdaq higher.
What this means for investors
Intel’s fourth-quarter earnings report negatively impacted markets today, but there was still some positive momentum for other names. The chipmaker painted a downbeat picture for the coming months, mainly due to supply constraints.
On the earnings call for investors, the company discussed inventory tightness, letting investors know that finished goods inventory has declined to 40% of its peak level, necessitating a hand-to-mouth supply management approach and leading to supply shortages in Q1.
Some investors refocused on the artificial intelligence (AI) trade, though, pushing mega-cap tech names higher. Strong advances in Nvidia, Microsoft, Meta, and Fortinet indicate that investors continue to favor high-quality growth and cybersecurity investments, despite broader market fluctuations following an eventful week.
Geopolitical uncertainty still drove safe-haven assets like gold and energy higher. Tariff talk, concerns about stubborn inflation, and global instability are all driving investors to seek safety and diversification.
