Wall Street's major indexes pulled back Thursday as semiconductor stocks stumbled on Texas Instruments' weak guidance, though the S&P 500 maintained its historic perch above 6,000. Meanwhile, AI enthusiasm and strong subscriber growth from Netflix kept tech sentiment broadly constructive.

Major Markets Performance

The S&P 500 declined 0.3% to close at 6,078.40, marking a pause in what has been a strong January rally. Despite today's pullback, the index is posting its second consecutive week of gains, with an impressive 79% of companies beating earnings estimates this season. Netflix led the winners with a 15% surge on record subscriber additions, while Oracle jumped 10% following the announcement of a $500 billion Trump administration deal.

The NASDAQ Composite fell 0.5% to 19,962.11, remaining less than 1% from its record high. Tech sentiment remained mixed, with Twilio soaring 20% on optimistic AI forecasts, while chipmakers faced pressure following Texas Instruments' disappointing guidance.

North of the border, the TSX held at 25,243.95, maintaining a 2.09% gain year-to-date. Canadian markets faced pressure from potential U.S. trade tensions, with proposed 25% tariffs weighing on sentiment. While Shopify, Brookfield, and Constellation Software each gained 1%, Canadian Natural Resources dropped 4% amid trade concerns.

Market Catalysts and Global Context

The day's trading was influenced by several key factors, including the Trump administration's proposed 25% tariffs on Canada and Mexico, continued strength in corporate earnings led by Netflix, and healthcare innovation highlighted by Novo Nordisk's 11% gain on positive obesity treatment results.

In the commodities space, WTI crude oil dipped 0.33% to $75.58, while gold advanced 0.39% to $2,754. Bitcoin traded at $104,275, down 0.45%.

Fixed Income & Looking Ahead

The bond market showed a positive shift, with the 10-year Treasury yield at 4.62% and the two-year yield at 4.28%. Investors are now turning their attention to next week's Federal Reserve two-day policy meeting and a slate of major tech earnings from Microsoft, Meta, Tesla, and Apple.

Strategic Outlook

The tech sector continues to show resilience despite chip weakness, though Canadian exposure warrants caution amid trade uncertainty. Opportunities in AI-focused companies showing strong guidance remain a key theme for investors to watch.