Why Wall Street is Panicking: Intel's Shocking Plunge and Gold Soars to NEW Heights!

NEW YORK (AP) — The U.S. stock market is experiencing mixed trading as the week draws to a close, characterized by fluctuations stemming from recent geopolitical tensions and corporate earnings reports. As of 1:54 p.m. Eastern time on Friday, the S&P 500 remained mostly unchanged, poised to mark its second consecutive week of modest losses. The Dow Jones Industrial Average was down 365 points, or 0.7%, while the Nasdaq composite edged up 0.3%.

Most stocks on Wall Street faced declines, notably impacted by a significant drop from Intel, which plunged 17.6%. Despite reporting better-than-expected results for the end of 2025, investors were concerned about the company’s guidance for the first quarter of 2026, which fell short of Wall Street’s expectations. Chief Financial Officer David Zinsner cited industry-wide supply shortages, projecting that available supply would hit a low early in the year before beginning to improve in the spring. Meanwhile, CEO Lip-Bu Tan emphasized that the artificial intelligence boom presents new opportunities for Intel.

In the bond and foreign-currency markets, trading activity remained relatively subdued following earlier volatility. Concerns arose earlier this week when President Donald Trump threatened to impose a 10% tariff on European countries opposing his controversial desire to purchase Greenland. This threat prompted a sell-off in U.S. Treasury bonds, raising yields and causing the dollar to weaken against other currencies. However, markets found a degree of relief after Trump announced “the framework of a future deal with respect to Greenland,” accompanied by the cancellation of the tariffs, though specific details of the framework remain scant.

Gold prices surged again on Friday, nearing a record $5,000 per ounce, reflecting a growing appetite among investors for safer assets amid ongoing market uncertainty. So far this year, gold prices have climbed nearly 15%.

On the corporate front, Capital One Financial saw a notable decline of 6.8% following a disappointing profit report for the end of 2025 and the announcement of a $5.15 billion acquisition of Brex, a platform that facilitates corporate card issuance for businesses. Conversely, SLB reported stronger-than-expected profits for the latest quarter and raised its dividend by 3.5%. CEO Olivier Le Peuch noted that revenues had improved across all four global regions for the first time since spring 2024.

In a somewhat surprising turn, CSX rose by 4.2% despite reporting weaker profits than anticipated. Analysts pointed to the company’s forecast, predicting increased operating profit retention from each dollar of revenue in 2026. Clorox, too, saw a gain of 1.7% after announcing its acquisition of GOJO Industries, the maker of Purell, for $2.25 billion in cash.

In the bond market, Treasury yields showed a mixed response following a survey indicating that U.S. consumers’ inflation expectations for the upcoming year improved to 4%. While this figure remains significantly above the Federal Reserve's target of 2%, it marks the lowest reading in a year, according to a survey conducted by the University of Michigan. This improvement could help avert the feared scenario where inflation expectations trigger a self-perpetuating cycle of rising prices.

Consumer sentiment in the U.S. appears slightly stronger than economists had predicted, which could support continued spending and, in turn, maintain the momentum of the U.S. economy. A preliminary report from S&P Global indicated ongoing growth in U.S. business activity.

The yield of the 10-year Treasury dipped to 4.25% from 4.26% late Thursday, reflecting ongoing adjustments in the market. Meanwhile, stock markets abroad showed a mixed performance, with European indexes predominantly lower after a rise in Asian markets earlier in the day. Japan’s Nikkei 225 gained 0.3% after the Bank of Japan opted to keep its key interest rate unchanged at 0.75%, a decision that many investors had anticipated.

The global financial landscape has calmed after a week marked by fluctuations, including a spike in long-term government bond yields in Japan, driven by concerns about Prime Minister Sanae Takaichi potentially exacerbating the country’s existing debt burden.