Wall Street's main indexes closed lower Friday as investors stepped back while they digested a mixed bag of economic data and earnings reports and prepared for a week filled with economic releases and a Federal Reserve meeting.

The technology sector was the biggest drag on the market as megacap stocks including Nvidia reversed after rallying sharply earlier in the week.

The housing market data was hotter than expected, while an S&P Global survey showed business activity slowing to a nine-month low in January as prices rose. However, firms reported increased hiring, supporting the Federal Reserve's cautious approach to monetary policy this year.

The University of Michigan's final estimate on consumer sentiment dropped to 71.1 from a previous estimate of 73.2.

At the end of a relatively light week for data, traders were betting the Fed would keep borrowing costs unchanged at its Jan. 28-29 meeting and expect its first rate cut in June, the latest data from CME Group's FedWatch tool showed.

"It really boils down to some mixed economics and earnings news," said Scott Helfstein, head of investment strategy at ETF company Global X.

Investors are bracing for next week's slew of key inflation and economic growth data as well as the Fed meeting, while waiting for policy updates from the Trump administration.

"There is anticipation of a really big news week ahead. And there is lingering policy uncertainty with the new administration's first week on the job, which is likely to persist for the next few weeks," he said.

Investors worry that U.S. President Donald Trump's proposed tariffs could exacerbate inflationary pressures and slow Fed rate cuts, after he referred to trade policy multiple times this week without providing concrete details of his plans.

Trump has said tariffs on Mexico, Canada, China and the European Union could be announced on Feb. 1, but analysts say major plans could be announced on April 1.

According to preliminary data, the S&P 500 lost 17.48 points, or 0.29%, to end at 6,101.23 points, while the Nasdaq Composite lost 101.78 points, or 0.51%, to 19,951.90. The Dow Jones Industrial Average fell 146.14 points, or 0.33%, to 44,418.93.

On a weekly basis, the indexes were looking at their second straight week of advances.

The benchmark S&P 500 had ended Thursday with a record closing high for the first time since early December after Trump called for taxes, oil prices and interest rates to be lowered during his first international appearance this term at the World Economic Forum in Davos, Switzerland.

On Wednesday the market had been bolstered by a sharp rally in technology stocks. But on Friday tech was the weakest sector, with a steep sell-off in chip maker Texas Instruments, which forecast a first-quarter profit below Street estimates as it grapples with an inventory buildup in its key automotive and industrial markets.

Elsewhere in earnings, American Express reported a 12% jump in fourth-quarter profit. Its shares, however, fell sharply to weigh on the blue-chip Dow.

Also dragging on the Dow was Boeing, which lost ground after the planemaker warned of a fourth-quarter loss of about $4 billion. Boeing is due to report results on Tuesday.

Verizon shares rose after the cellphone service provider reported higher-than-expected quarterly subscriber additions.