U.S. Stock Market Summary for Monday, February 24, 2025

 


1. Major Indices Performance

  • S&P 500: Fell 0.5% to 5,983.25.
  • Dow Jones Industrial Average: Rose 0.1% to 43,461.21.
  • Nasdaq 100: Dropped 1.21% to 19,286.92.
  • Russell 2000: Declined 0.8% to 2,178.27.

2. Market Overview

The U.S. stock market continued its decline, extending last week's losses. The S&P 500 recorded its third consecutive day of declines, while the Nasdaq saw its fourth drop of over 1% in February. Key factors influencing market sentiment included:

  • Concerns over AI-related tech spending, as Microsoft reportedly scrapped data center leases.
  • Nvidia’s upcoming earnings report, raising questions about future AI demand.
  • Weak consumer confidence and inflation concerns, ahead of key economic data releases.

3. Notable Stock Movements

  • Nvidia (NVDA): Dropped 3.1% ahead of its highly anticipated earnings report.
  • Berkshire Hathaway (BRK.A, BRK.B): Reached a record high following strong Q4 profits.
  • Palantir (PLTR): Fell 10.5%, continuing its AI-related selloff.
  • Microsoft (MSFT): Declined 1% amid concerns over AI infrastructure spending.
  • Nike (NKE): Gained 4.9% after Jefferies upgraded its rating to "Buy."

4. Expert Commentary

  • Gene Goldman, Cetera Investment Management: "Markets are jittery, and any doubts about AI can trigger profit-taking."
  • Peter Boockvar, Bleakley Financial Group: "The AI-driven tech rally is entering a digestion phase."
  • Scott Helfstein, Global X: "Investors’ honeymoon phase with Trump’s trade policies is ending, raising market uncertainty."

5. Federal Reserve & Treasury Yields

  • 10-year Treasury yield: Declined as investors await inflation data.
  • Fed Rate Outlook: Traders expect no rate cuts until June, per CME’s FedWatch tool.

6. Institutional Investors & Market Sentiment

  • Declining economic data fueled concerns about growth.
  • Market breadth remained weak, with more stocks declining than advancing.

7. Additional Market Developments

  • Apple (AAPL): Announced a $500 billion U.S. investment plan, boosting shares 0.7%.
  • Robinhood (HOOD): Fell 3.2%, despite resolving a legal issue with the SEC.
  • Tesla (TSLA), Amazon (AMZN), Meta (META): All closed lower as tech stocks faced pressure.

Conclusion

Monday's market action reflects ongoing investor caution regarding AI sector growth, inflation, and economic policy uncertainty. While defensive stocks saw some gains, broader market sentiment remains weak. Investors are now closely watching Nvidia’s earnings and upcoming economic reports for further direction.

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