Microsoft’s update, released the same evening, fell short of expectations for growth in its Azure cloud division. The stock declined more than 8% across the week, despite management’s reaffirmation of long-term cloud strategy.
Apple ended an eight-week slide after reporting a quarter marked by a 23% jump in iPhone sales, yet shares moved lower Friday as traders focused on the potential impact of industry-wide memory shortages on future costs.
GE Vernova reached record territory Friday, rising 10% for the week after better-than-expected earnings. Corning gained 11% over the period, helped by a new $6 billion agreement to supply fiber-optic cables to Meta.
Mixed performance beyond technology
Starbucks shares fell more than 6% on the week. The coffee chain delivered stronger-than-anticipated quarterly figures on Wednesday and outlined growth initiatives during an Investor Day on Thursday, but the stock failed to hold intraday advances in either session.
Honeywell rose almost 3% after reporting solid results and accelerating plans to spin off its aerospace unit. Conversely, Dover slipped over 2% despite beating estimates and raising guidance; profit-taking appeared to weigh on the shares. Danaher’s favorable report did not translate into gains, and Boeing posted volatile moves following a mixed release, leaving both names lower by the week’s end.
Software sector repriced
Enterprise software names encountered broad pressure Thursday, sparking what analysts described as a valuation reset for software-as-a-service companies. Salesforce slid 7% over the week. ServiceNow dropped 10% even after exceeding expectations and authorizing additional share repurchases.
CrowdStrike and Palo Alto Networks, both focused on cybersecurity, declined more than 2% each for the week. The stocks were pulled lower during the sector-wide downturn despite ongoing arguments that artificial-intelligence tools strengthen demand for cyber protection.
Imagem: Internet
Microsoft’s own 10% single-day drop on Thursday contributed to the downward momentum across peer companies.
Federal Reserve holds rates; leadership change proposed
The Federal Open Market Committee concluded its two-day meeting Wednesday by leaving the federal-funds target range unchanged, the fourth policy decision without a cut after three consecutive reductions last year. Chair Jerome Powell said in a statement that economic activity continues to grow at a “solid pace,” while job gains remain subdued and the unemployment rate shows signs of stabilization.
Two days later, President Donald Trump announced his intention to nominate Kevin Warsh to succeed Powell when the current chair’s term ends in May. Warsh, who served as a Fed governor from 2006 to 2011, would need Senate confirmation. Market reaction was limited, although precious-metal prices fell sharply amid speculation that Warsh might adopt a tighter stance on monetary policy.
The full text of the Fed decision is available on the Federal Reserve’s website, providing detailed economic assessments and policy guidance.
Monthly barometer remains positive
The modest January advance for the S&P 500 preserved a historical pattern watched by some market participants: the so-called January Barometer, which suggests that a positive first month often precedes gains for the rest of the calendar year. While past performance does not guarantee future results, the index’s 1.37% monthly rise kept the indicator in favorable territory.
Across the 34-stock portfolio, 10 companies reported results during the week, including three of the largest positions. The combined flow of earnings surprises—both on the upside and downside—coupled with macroeconomic and policy headlines, produced wide dispersion in individual returns even as major benchmarks ended near flat.
Crédito da imagem: Shutterstock
