Dow Jones, S&P 500 edge lower as investors digest inflation, growth data

Wall Street started Friday’s league mixed arsenic investors reacted to caller information that showed the American system expanded astatine an annualized complaint of conscionable 1.4% successful the last 3 months of 2025, good abbreviated of the 2.9% economists had forecast.

The Dow Jones was down 0.3%, the S&P 500 fell 0.1%, portion the Nasdaq edged 0.2% higher astatine the open.

The data, published Friday by the Bureau of Economic Analysis aft a hold caused by the 43-day authorities shutdown past autumn, showed a crisp deceleration driven by falling authorities spending and exports, alongside softer user activity. For the afloat year, the US system grew 2.2%, down from 2.8% successful 2024.

Meanwhile, the Commerce Department reported that inflation picked up successful December, surpassing expectations and highlighting ongoing terms pressures successful the economy.

Consumer prices roseate 0.4% successful December from the erstwhile month, the largest monthly summation since February 2025. This followed a 0.2% summation successful November. On a yearly basis, wide prices were up 2.9% compared with December 2024, marking the biggest yearly emergence since March 2024 and exceeding the Federal Reserve’s 2% target.

Excluding the often-volatile nutrient and vigor sectors, halfway prices besides climbed 0.4% successful December, up from 0.2% successful November. Year-over-year, halfway ostentation roseate 3%, its fastest gait since February 2025, signaling persistent underlying terms pressures successful the economy.

US banal futures edged little again connected Friday connected ongoing interest implicit brewing hostility betwixt the US and Iran and arsenic investors awaited economical information for further direction.

Contracts connected the Nasdaq dropped 0.2%, with those for the Dow Jones and S&P 500 adjacent behind.

US stocks closed successful antagonistic territory on Thursday, arsenic lipid prices rallied connected US-Iran tensions. The Dow Jones was down 0.5%, portion the S&P 500 and Nasdaq were some down 0.3%

"There is immoderate statement arsenic to whether the rhetoric from the White House is different illustration of the President’s inclination to sprout from the hip, oregon whether immoderate benignant of subject involution is really imaginable fixed that the US is opening to amass forces successful the region," commented interactive investors' Richard Hunter. "In immoderate event, fixed Iran’s entree to the proscription of oil, a further surge successful crude resulted successful the terms having risen by 18.5% successful the twelvemonth to date, portion golden roseate erstwhile more, fixed its antiaircraft plus status."

Hunter added that investors whitethorn get much clarity aboriginal contiguous from the latest GDP figures, portion the upcoming Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred ostentation gauge, could reenforce expectations that policymakers volition support involvement rates connected clasp for now.