Stocks settled lower on Friday as market participants weighed President-elect Joe Biden's new stimulus package against a worsening global pandemic and weaker-than-expected data on U.S. retail sales.

Stocks settled lower on Friday as market participants weighed President-elect Joe Biden's new stimulus package against a worsening global pandemic and weaker-than-expected data on U.S. retail sales.

The Dow and Nasdaq both posted weekly declines of 0.9% and 1.5%, respectively, while the S&P 500 lost 1.5% over the same time period.

The Dow and Nasdaq both posted weekly declines of 0.9% and 1.5%, respectively, while the S&P 500 lost 1.5% over the same time period.

Late Thursday, Biden released his $1.9 trillion pandemic relief proposal, which included additional stimulus measures to add to the $900 billion package recently passed in December. The overall size and contents of the package was pretty much in line with expectations, but the package now relays on Congressional support to pass.

Meanwhile, U.S. retail sales unexpectedly declined 0.7% in December from November, following a downwardly revised 1.4% decrease, according to the Commerce Department. However, retail sales are still up 2.9% year-over-year.

Late Thursday, Biden released his $1.9 trillion pandemic relief proposal, which included additional stimulus measures to add to the $900 billion package recently passed in December. The overall size and contents of the package was pretty much in line with expectations, but the package now relays on Congressional support to pass.

Consumer sentiment also declined further than expected in January, with consumers expressing concern over the rising COVID national outbreak and political turmoil following the recent events in Washington D.C. According to the University of Michigan's Surveys of Consumers preliminary reading, consumer sentiment fell to 79.2 in January from 80.7 in December.

Meanwhile, U.S. retail sales unexpectedly declined 0.7% in December from November, following a downwardly revised 1.4% decrease, according to the Commerce Department. However, retail sales are still up 2.9% year-over-year.

"Two offsetting shifts helped narrow the January loss in sentiment: the COVID-19 vaccines and a partisan shift in expectations due to the anticipated impact of Biden's economic policies," said Richard Curin, chief economist for the Surveys of Consumers, in a statement. "Importantly, COVID's threat to physical and mental health were seen in January as more important that its financial repercussions."

Consumer sentiment also declined further than expected in January, with consumers expressing concern over the rising COVID national outbreak and political turmoil following the recent events in Washington D.C. According to the University of Michigan's Surveys of Consumers preliminary reading, consumer sentiment fell to 79.2 in January from 80.7 in December.

Here's how the market settled to close out the week:

"Two offsetting shifts helped narrow the January loss in sentiment: the COVID-19 vaccines and a partisan shift in expectations due to the anticipated impact of Biden's economic policies," said Richard Curin, chief economist for the Surveys of Consumers, in a statement. "Importantly, COVID's threat to physical and mental health were seen in January as more important that its financial repercussions."

S&P 500 Index (SPY  ): -0.72% or -27.29 points to 3,768.25

Here's how the market settled to close out the week:

Dow Jones Industrial Average (DIA  ): -0.57% or -177.26 points to 30,814.26

S&P 500 Index (SPY  ): -0.72% or -27.29 points to 3,768.25

Nasdaq Composite Index (QQQ  ): -0.87% or -114.14 points to 12,998.50

For Stocks, Spotify (SPOT  ) dropped more that 4% after Citi analysts downgraded the stock, citing that the company's push into podcasts may be overvalued. Big banks JP Morgan Chase (JPM  ), Citigroup (C  ) and Wells Fargo (WFC  ) all kicked off fourth quarter earnings season, with respective shares all declining despite beating expectations.

Dow Jones Industrial Average (DIA  ): -0.57% or -177.26 points to 30,814.26

For Sector Performance, sectors on the S&P 500 ended the session mostly lower, with Energy (XLE  ) falling over 4% and Financials (XLF  ), Materials (XLB  ) and Industrials (XLI  ) completing the bottom four. The only gainers were Real Estate (XLRE  ), increasing over 2%, Utilities (XLU  ), Health Care (XLV  ) and Communication Services (XLC  ).

Nasdaq Composite Index (QQQ  ): -0.87% or -114.14 points to 12,998.50

For Commodities and Currency, the U.S. Dollar (UUP  ) rose on Friday to over two month heights, with the dollar index, which tracks the greenback against other currencies, rising 0.458%. Gold (GLD  ) prices slipped lower on Friday on the dollar's strength, which outweighed the yellow metal's appeal as an inflation hedge against more near-term stimulus. Spot gold declined 1% to $1,827.90 per ounce, while U.S. gold futures settled 1.2% lower at $1,829.90 per ounce. Crude oil futures on Friday as renewed coronavirus lockdown concerns outweighed stimulus optimism. International benchmark Brent Crude (BNO  ) fell 2.34% to $55.10 per barrel, while domestic index West Texas Intermediate (USO  ) settled 2.26% lower at $52.36 each.

For Stocks, Spotify (SPOT  ) dropped more that 4% after Citi analysts downgraded the stock, citing that the company's push into podcasts may be overvalued. Big banks JP Morgan Chase (JPM  ), Citigroup (C  ) and Wells Fargo (WFC  ) all kicked off fourth quarter earnings season, with respective shares all declining despite beating expectations.

The week ahead is packed with corporate quarterly earnings, with notables including Bank of America (BAC  ), Goldman Sachs (GS  ), Netflix (NFLX  ), and Intel (INTC  ). On Wednesday, Biden will transition into his first presidential term, with President Donald Trump leaving office at 12 p.m.

For Sector Performance, sectors on the S&P 500 ended the session mostly lower, with Energy (XLE  ) falling over 4% and Financials (XLF  ), Materials (XLB  ) and Industrials (XLI  ) completing the bottom four. The only gainers were Real Estate (XLRE  ), increasing over 2%, Utilities (XLU  ), Health Care (XLV  ) and Communication Services (XLC  ).

The stock market will be closed on Monday for a U.S. holiday, with markets reopening at normal hours on Tuesday.

For Commodities and Currency, the U.S. Dollar (UUP  ) rose on Friday to over two month heights, with the dollar index, which tracks the greenback against other currencies, rising 0.458%. Gold (GLD  ) prices slipped lower on Friday on the dollar's strength, which outweighed the yellow metal's appeal as an inflation hedge against more near-term stimulus. Spot gold declined 1% to $1,827.90 per ounce, while U.S. gold futures settled 1.2% lower at $1,829.90 per ounce. Crude oil futures on Friday as renewed coronavirus lockdown concerns outweighed stimulus optimism. International benchmark Brent Crude (BNO  ) fell 2.34% to $55.10 per barrel, while domestic index West Texas Intermediate (USO  ) settled 2.26% lower at $52.36 each.

The week ahead is packed with corporate quarterly earnings, with notables including Bank of America (BAC  ), Goldman Sachs (GS  ), Netflix (NFLX  ), and Intel (INTC  ). On Wednesday, Biden will transition into his first presidential term, with President Donald Trump leaving office at 12 p.m.

The stock market will be closed on Monday for a U.S. holiday, with markets reopening at normal hours on Tuesday.