U.S. Stocks: S&P 500 Falls for Second Consecutive Week as Trump's Remarks Send Markets on a Roller Coaster

The S&P 500 ended Friday essentially flat, marking its second consecutive weekly decline. As geopolitical tensions stirred by U.S. President Donald Trump subsided, investors redirected their focus back to corporate earnings and monetary policy.

The S&P 500 was largely unchanged on Friday, while a rise in technology stocks propelled the Nasdaq 100 Index to a 0.3% gain.

Although concerns eased over potential new tariffs on European goods that Trump had threatened, investors overall remained hesitant to chase riskier assets, instead paying closer attention to the sustainability of corporate profit growth.

Intel's stock price plummeted by 17% after the personal computer processor manufacturer's CEO struck a cautious tone on performance and warned that the chipmaker was grappling with production issues.

Data released earlier on Friday showed U.S. consumer confidence climbed to a five-month high in January, fueled by growing optimism among Americans about the economy and their personal finances.

Business activity among U.S. companies showed only a modest improvement at the start of the new year, which continued to suppress labor demand.

Fund flow data indicated investors were pulling money out of U.S. assets. Bank of America reported that nearly $17 billion flowed out of U.S. stocks during the week Trump threatened tariffs on some European nations over the Greenland issue.

The S&P 500 fell 0.4% during the holiday-shortened week, as markets whipsawed between gains and losses following Trump's threat of tariffs related to Greenland and his subsequent announcement of a deal.

Trump also stated that he had narrowed down the list of candidates for the next Federal Reserve Chair, a decision closely watched for its potential market impact.

At the close of trading, the S&P 500 was virtually unchanged at 6,915.61 points.

The Dow Jones Industrial Average fell 0.6% to 49,098.71 points.

The Nasdaq Composite Index rose 0.3% to 23,501.24 points.

The Nasdaq 100 Index increased by 0.3% to 25,605.47 points.

The Russell 2000 Index declined by 1.8% to 2,669.162 points.