Dow, S&P 500, Nasdaq stall as investors weigh earnings, Trump on China

Novo Nordisk’s stock (NVO) rose more than 8% in Friday trading on news that the company’s latest weight-loss product delivered favorable results.

The bump elevated the pharmaceutical giant to the most valuable publicly listed company in Europe.

Novo’s new drug, amycretin, similar to the company’s blockbuster weight-loss and diabetes drugs Wegovy and Ozempic, provided weight loss of up to 22% in early-stage clinical trials, reports Yahoo Finance’s Anjalee Khemlani.

The company tested the once-weekly injection on 125 people for up to 36 weeks with incremental increases in dosage.

Amycretin could give Novo a buzzy product in a newly competitive obesity market. It works similarly to existing GLP-1 products by mimicking a hormone in the body that provides a satiated feeling, which curbs hunger, but adds a different hormone in the pancreas.

Read more about the market impact of Novo’s experimental weight loss drug here.

Consumer sentiment in January fell for the first time in six months, weakened by expectations of a souring labor market and the potential for higher prices triggered by tariffs.

The University of Michigan said on Friday its Consumer Sentiment Index dropped to 71.1, down from December’s reading of 74, and well below last year’s 79.

Year-ahead inflation expectations rose from 2.8% last month to 3.3% this month, the data showed, highlighting a more pessimistic mood about pricing pressures. Long-run inflation expectations also rose from 3% last month to 3.2% in January.

“Concerns over the future trajectory of inflation were visible throughout the interviews and were tied to beliefs about anticipated policies like tariffs,” said Joanne Hsu, director of surveys of consumers.

The sur behind Friday’s reading closed on Inauguration Day. Next month’s survey will offer the first glimpse of sentiment as people develop their views coinciding with Trump’s first weeks in office.

A less-aggressive tariff stance from President Trump has pressured the US dollar, pulling down the greenback from recent highs and boosting other currencies in tandem.

In an appearance on Fox News Thursday night, Trump said, “We have one very big power over China, and that’s tariffs,” adding, “I’d rather not have to use them.”

The market interpreted the remarks as a walk-back of sorts, leaving Beijing and Washington with more room to avoid a potential trade war.

Leading up to Trump’s inauguration, the US dollar has rallied against a basket of currencies. The gains have been fueled in part by threats of sweeping tariffs as well as expectations that the Federal Reserve adopts a slower approach to rate-cutting this year.

The dollar index (DX=F, DX-Y.NYB) has fallen from its recent high earlier this month, but it has still gained about 7% from the lows of September.

Sales to purchase existing homes rose in December to the strongest pace in almost a year amid high mortgage rates and elevated home prices.

Existing home sales climbed 2.2% in December to a seasonally adjusted annual rate of 4.24 million, according to the National Association of Realtors, the strongest pace since February 2024. Economists polled by Bloomberg expected existing home sales to hit a pace of 4.2 million in December.

“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” NAR chief economist Lawrence Yun said in a statement. “Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months.”

Some house hunters are still hesitant due to expensive housing costs. Mortgage rates, which have been rising over the past six weeks, slightly fell this week.

According to Freddie Mac, the average 30-year fixed mortgage rate fell 8 basis points to 6.96% from 7.04%.

Read more: What determines mortgage rates? It’s complicated.

Meanwhile, home prices continue to remain high. The median home price increased by 6% from December 2023 to $404,400, marking the 18th consecutive month of year-over-year price gains and the largest annual growth since October 2022.

“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”

Stocks are headed for another winning week as investors weigh Donald Trump’s hints at a softer stance on China tariffs.

The Dow Jones Industrial Average (^DJI) fell 0.1% at the open, while the S&P 500 (^GSPC) nudged above the flat line after the index hit its first record high of 2025 on Thursday. The tech-heavy Nasdaq Composite (^IXIC) ticked up 0.2%.

The major gauges are set to end the week with gains above 2%, highlighting Trump’s influence on the market, even as Wall Street carried doubts about his ability to execute on his threats and remarks.

President Trump has called for cuts to US interest rates, oil prices, and taxes, which has spurred investor optimism for his policies. On Thursday, Trump said he’d “rather not” impose tariffs on China — a softening stance that eased some fears of a potential trade war.