US Markets Recover from Big Losses and End Flat

Table showing the performance of major U.S. equities indexes on Jan. 25, 2023

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Key Takeaways

  • U.S. markets declined on earnings and growth concerns during early trading on Jan. 25, 2023, but they recovered to end the day mostly flat.
  • The Dow managed to post a minimal gain, but the S&P 500 and the Nasdaq ended Wednesday's session with slight declines.
  • Oil and gold futures moved higher, while major cryptocurrency prices declined.

U.S. equities rallied back from big early losses and ended flat as the latest group of financial reports raised concerns about corporate profits and the possibility of a recession. The Dow squeezed out a small gain, while the S&P 500 and Nasdaq fell fractionally.

Shares of The Walt Disney Company (DIS), McDonald's (MCD), and Walgreens Boots Alliance (WBA) rose 1%, helping the Dow to a fourth-straight winning session. Shares of Amgen (AMGN), Chevron (CVX), 3M (MMM), and The Travelers Companies (TRV) fell 1%. Microsoft (MSFT) shares slipped following the software giant's warning about revenue growth. Boeing (BA) shares made a 180-degree turn, bouncing back from morning declines to end the day up 0.3% after the plane maker posted a surprising fourth quarter loss.

Shares of Nasdaq (NDAQ) sank as the exchange's revenues from indexing and initial public offerings (IPOs) dropped. Norfolk Southern (NSC) shares lost ground after the freight train operator said higher costs hurt profits. Shares of Nextera Energy (NEE), Enphase Energy (ENPH), and other alternative energy companies tumbled.

MarketAxess Technology (MKTX) was the best-performing stock in the S&P 500 as the electronic trading platform reported better-than-expected results. Capital One Financial (COF) shares climbed after the bank had a jump in revenue. U.S. Bancorp (USB) reported better-than-expected profit, and shares rose. Shares of AT&T (T) gained as the telecom company's subscriber growth beat forecasts.

Tesla Earnings

Shares of News Corp (NWSA) and Fox Corporation (FOXA) advanced after Rupert Murdoch said he no longer wanted to pursue putting the two media companies back together again. Tesla (TSLA) shares rose ahead of its after-the-close earnings report, and they're up in extended trading.

Oil and gold futures advanced. The yield on the 10-year Treasury note was flat. The U.S. dollar fell against the euro, pound, and yen. Prices for major cryptocurrencies were down.

The New York Stock Exchange (NYSE) said a manual error caused the glitch that led to wild price swings and trading halts for shares of hundreds of companies at the opening bell yesterday. 

Table showing the stocks with the biggest gains and losses on the S&P 500 on Jan. 25, 2023

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