US stocks pulled back on Friday after a series of economic data painted a picture of weak growth and sticky inflation, while traders waited for a possible Supreme Court decision on President Donald Trump's tariffs.
The Dow Jones Industrial Average fell 166 points, or 0.3%. The S&P 500 traded down 0.3%, while the Nasdaq Composite dropped 0.4%.
Opendoor stock surged 18% as the residential real estate platform made progress in its transformation plan. Q4 revenue and adjusted EBITDA exceeded the Wall Street consensus estimates.
Traders received a downbeat view on growth of the U.S. economy, as gross domestic product increased 1.4% for the fourth quarter. That was far below the 2.5% gain that economists polled by Dow Jones had anticipated. The 4.4% advance in the third quarter sharply surpassed estimates.
According to the Commerce Department, the record-breaking government shutdown that took place through the first half of the fourth quarter took off roughly 1 percentage point from economic growth.
Meanwhile, the personal consumption expenditures price index report — the Federal Reserve's preferred inflation gauge — showed that inflation held steady in December. Excluding volatile food and energy prices, core PCE came in at 3%, in line with expectations but still well above the Fed's 2% target.
Fed policymakers are divided between officials who are worried about supporting the labor market and those who are more concerned about inflation. Minutes from the January Fed meeting indicate that some officials will need to see more evidence that inflation is cooling before voting for additional interest rate cuts.
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