Wall Street Indexes Lose Steam Amid Rising Macroeconomic Uncertainties

Barry Adams
16 Jan, 2026
New York City

Stocks traded higher on Friday and extended the previous session's gains as investors grappled with a slew of headlines from Washington, ranging from Venezuela and Greenland to the Federal Reserve's independence.  

The S&P 500 index and the Nasdaq Composite advanced 0.3% and built on the 0.2% rise in the previous session. 

For the week, the S&P 500 index is down 0.3%, and the Nasdaq Composite fell 0.6% after a hectic week.  

Financials traded higher after Goldman Sachs and Morgan Stanley reported better-than-expected quarterly results, helping peers to rebound from the losses earlier in the week. 

Investors remained cautious after inflation reports supported the case for the Federal Reserve to hold rates at the end of the policy meeting later in the month. 

Moreover, economists are estimating sharp downward revisions in the nonfarm payrolls increase in 2025, as the statistical agency reviews a wider batch of surveys.

The U.S. economy added 584,000 jobs in 2025, sharply lower than the 2 million increase in 2024, as businesses grapple with the Trump administration's constantly changing trade policy, persistent inflation, and macroeconomic uncertainty.

Despite the tighter immigration policy and deportations of 3 million foreign citizens, American workers are struggling to find jobs, and businesses are unable to fill as many as 300,000 jobs in the manufacturing sector.  

 

U.S. Stock Movers 

Goldman Sachs extended its two-day gain to 5% and traded at $980.0 after the financial services provider reported better-than-expected fourth-quarter results, driven by higher profits in equity trading and wealth management.

Total net revenues decreased 3% to $13.5 billion from $13.9 billion, net income increased to $4.6 billion from $4.1 billion, and diluted earnings per share increased to $14.01 from $11.95 a year ago.