US Open: Dow and S&P 500 Ease as Investors Turn Defensive

US open trading on Wall Street started on a softer note on Friday as investors adopted a more cautious stance following recent gains. After two strong sessions earlier in the week, market sentiment shifted as renewed geopolitical concerns and mixed corporate signals encouraged defensive positioning across major indices.

At around 15:15 GMT, the Dow Jones Industrial Average was down 0.56% at 49,107, while the S&P 500 slipped 0.15% to 6,903. The Nasdaq Composite also opened slightly lower, declining 0.08% to 23,418. The weaker US open saw the Dow fall by more than 270 points at the opening bell, nearly wiping out gains from the previous session. Meanwhile, the S&P 500 remained on track for its first two-week losing streak since June.

Geopolitical tensions drive defensive mood

Renewed geopolitical uncertainty played a key role in shaping the US open, with investors reacting to ongoing questions surrounding US–Europe relations and developments linked to Iran. Although tensions had eased earlier in the week, lingering risks resurfaced and weighed on broader market confidence.

The defensive shift was also reflected in the commodities market, as gold continued its push to record highs. The move into safe-haven assets suggested growing caution among investors, limiting upside momentum for equities during the US open.

Economic data offers modest reassurance

On the macroeconomic front, data releases provided limited support. A preliminary reading from S&P Global showed the US manufacturing PMI rising slightly to 51.9 in January from 51.8 in December, indicating continued expansion. The services PMI held steady at 52.5, while the composite PMI edged higher to 52.8.

In addition, the University of Michigan’s consumer sentiment index was revised upward to 56.4 for January. This marked a second consecutive monthly improvement and the highest level since August, with modest gains recorded across all major components.

Corporate news weighs on sentiment

Corporate developments added further pressure to the US open, particularly in the technology sector. Intel shares fell sharply in early trading after the chipmaker issued weak earnings and revenue guidance for the current quarter. The company projected first-quarter revenue of $11.7bn to $12.7bn and breakeven adjusted earnings per share.

With no major earnings releases scheduled, the US open remained driven by geopolitical risks and selective corporate weakness, keeping investor sentiment firmly defensive.

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