US stocks were mixed on Friday as investors digested two days of gains driven by easing geopolitical tensions and turned their attention to corporate earnings and next week’s Federal Reserve decision.
The S&P 500 and Nasdaq Composite hovered around the flatline, while the Dow Jones Industrial Average fell 247 points, or 0.5%, weighed down by a 2% decline in Goldman Sachs shares.
The muted session marked a pause after a relief rally earlier in the week.
Nvidia and AMD jump on China optimism
Chip stocks were among the day’s bright spots. Shares of Nvidia rose more than 2%, while Advanced Micro Devices climbed over 3%.
The gains followed reports that Nvidia Chief Executive Jensen Huang is planning to visit China in the coming days, according to people familiar with the matter cited by CNBC.
Separately, Bloomberg reported that Chinese regulators have given in-principle approval to major technology companies, including Alibaba, Tencent Holdings and ByteDance, to move to the next stage of preparations for potential purchases of Nvidia’s H200 artificial intelligence chips.
While the approvals do not yet constitute final authorization, the development was seen by investors as a meaningful step toward a resumption of sales into the Chinese market.
The prospect of renewed access to China, which has been a major source of uncertainty for Nvidia over the past year, helped lift sentiment around the stock, even as broader market gains cooled.
Not all semiconductor names shared in the rally. Intel shares plunged about 14% after the company issued a disappointing first-quarter outlook.
The chipmaker warned about manufacturing challenges and softer conditions ahead, undercutting confidence in its near-term recovery.
Intel’s sharp decline was one of the largest single-stock drags on the major averages.
Geopolitics ease, but uncertainty remains
The mixed session came as investors continued to assess the durability of the recent rebound.
Stocks began climbing on Wednesday after President Donald Trump backed away from his threat to impose tariffs on imports from eight European nations, which had been scheduled to take effect on Feb. 1.
Trump’s decision followed his announcement that he and NATO Secretary General Mark Rutte had reached what he described as a “framework of a future deal with respect to Greenland.”
The remarks helped calm markets after a sharp sell-off earlier in the week tied to fears of escalating trade and geopolitical conflict.
However, uncertainty persists. Greenland Prime Minister Jens-Frederik Nielsen said on Thursday that he was not aware of the details of the framework Trump referenced and stressed that any agreement must respect Greenland’s sovereignty and territorial integrity.
Despite the de-escalation, Wall Street is ending the week on a cautious note.
The S&P 500 is on track for its first back-to-back weekly decline since June, reflecting lingering nervousness after a volatile stretch.
With geopolitical tensions temporarily easing, investors are refocusing on macroeconomic signals and monetary policy.
Traders are closely watching upcoming data on manufacturing, services and consumer sentiment ahead of the Federal Reserve’s policy decision next week.
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