Market Recap (2/16/25)
Market Recap of the Week of Feb 10, 2025 - Feb 14, 2025
Source: Apple Stocks Application
Overall Market Trends:
Stocks soared last week with all four major indices finishing the week positive. The New York Stock Exchange Composite (NYSE) rose 90 points (+0.45%), the NASDAQ Composite surged 502 points (+2.57%), the S&P 500 climbed 89 points (+1.47%), and the Dow Jones Industrial Average posted weekly gains of 243 points (+0.55%). These results were largely influenced by tariffs and new economic data.
Stocks rose on Monday after Trump announced plans for a 25% tariff on all steel and aluminum imports, propelling steel and aluminum companies higher: US Steel (NYSE: X) rose 4.6%, Nucor (NYSE: NUE) spiked 5.6%, and Cleveland-Cliffs (NYSE: CLF) popped over 18%. Chipmakers also rose as sentiment was up recently with Nvidia (NASDAQ: NVDA) increasing 2.9%, Micron (NASDAQ: MU) jumping 3.9%, and Broadcom (NASDAQ: AVGO) soaring 4.5%. McDonalds (NYSE: MCD) rose 4.8% on Monday, helping push the Dow higher.
Indices etched out small gains on Tuesday after Jerome Powell issued a caution regarding interest rates amid the recent hike in tariffs. In an address to the Senate Banking Committee, Powell remarked that the Federal Reserve did not find it necessary to rush any monetary policy decisions.
Stocks fell on Wednesday after a hot inflation reading was reported. The Consumer Price Index (CPI) rose 0.5% in January, far exceeding the 0.3% expectation. This sparked concern from investors that the Fed may remain stationary with its future policy decisions, as opposed to cutting rates.
Stocks soared on Thursday after new inflation data and tariff plan updates helped ease investor concerns about interest rates and global trade. After announcing plans for new tariffs, President Trump decided to hold off implementing these tariffs, although stating that new tariffs are on the way. The Producer Price Index (PPI) rose 0.4% in January, higher than the 0.3% estimate. However, the investors looked past the hotter inflation reading, noting that the PPI and CPI reports pointed towards a softer Personal Consumption Expenditures (PCE) report than feared.
Stocks ended the week little changed on Friday as investors assessed the most recent developments in inflation and international trade.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Monday: Markets Closed for President’s Day
Tuesday: Empire State manufacturing survey
Wednesday: Minutes of Fed's January FOMC meeting
Thursday: Initial jobless claims; Philadelphia Fed manufacturing survey
Friday: S&P flash U.S. services PMI; S&P flash U.S. manufacturing PMI; Consumer sentiment (final)
Future Earnings Reports: