Stocks Pause, Gold Rises, Bitcoin Sinks On Worst Day In Four Months: What's Driving Markets Friday?

The U.S. stock market lacked clear direction on Friday as traders assessed the latest mixed earnings reports and producer inflation data.

The Producer Price Index (PPI) came in at 1% year-on-year in December, up from a downwardly revised 0.8% in November, but below the predicted 1.3%.

The S&P 500 and Nasdaq remained relatively stable, hovering near the unchanged level, while the Dow Jones index experienced a decline of approximately 130 points, or 0.4%. Small-cap stocks, as represented by the iShares Russell 2000 ETF IWM, saw a marginal 0.1% decline.

Bitcoin experienced a substantial drop in value following the approval of a spot Bitcoin ETF. The cryptocurrency plummeted by over 6% Friday, marking its worst session since mid-August 2023, as traders likely opted to take profits on the news after the significant 60% rally it had seen since October.

Contrastingly, physical gold, as monitored by the SPDR Gold Trust GLD, which was initially expected to be one of the assets most affected by the approval of the spot Bitcoin ETF, increased by 1%, surpassing the $2,050 per ounce mark.

U.S. Treasury yields showed mixed movements in different maturities. The two-year yields decreased to 4.17%, while the 30-year yield increased to 4.2%.

Friday's Performance In US Major Indices, ETFs

The SPDR S&P 500 ETF Trust SPY held steady at $476.71, the SPDR Dow Jones Industrial Average DIA inched 0.3% down to $375.99 and the tech-heavy Invesco QQQ Trust QQQ was flat at $409.59, according to Benzinga Pro data.

Sector-wise, the Energy Select Sector SPDR Fund XLE was the outperformer, up 0.8%. The Consumer Discretionary Select Sector Fund XLY lagged behind, down 1%.

On an industry level, the VanEck Gold Miners ETF GDX rallied, up 2.7%. Airline stocks, as tracked by the U.S. Global JETS JETS, tumbled 4.7%

Friday's Stock Movers

• UnitedHealth Group Inc. UNH experienced a 3.6% decline, although the company exceeded earnings expectations, mainly due to reporting a higher-than-anticipated utilization of medical services.
• Tesla Inc. TSLA faced a 4% drop in its stock value, primarily driven by negative news affecting the giant electric vehicle manufacturer. Tesla announced the suspension of certain production activities in Europe due to component shortages caused by disruptions in the Red Sea region. Additionally, Tesla reduced the prices of its China Model 3 and Model Y vehicles.
• Bank of America Corp. BAC witnessed a decrease of 2.5% in its stock price following a decline in profits.
• The Bank of New York Mellon Corp. BK enjoyed a 3.5% increase in its stock price in response to its earnings report.
• Despite surpassing earnings and revenue estimates, Delta Air Lines Inc. DAL saw a substantial 8% decline in its stock value, primarily attributed to the airline’s downward revision of its 2024 earnings forecast. United Airlines Holdings, Inc. UAL and American Airlines Group Inc. AAL also experienced significant declines of 9.2% and 8.8%, respectively.
• Net Lease Office Properties NLOP recorded a remarkable 13% increase in its stock price, building on a 10% rise the previous day. This surge was attributed to the sale of four properties and the renegotiation of a loan.

Now read: Stagflation In 2024? Red Sea Crisis Could Trigger Domino Effect For Global Costs

Photo via Shutterstock.