Market Recap (2/9/25)
Market Recap of the Week of Feb 3, 2025 - Feb 7, 2025
Source: Apple Stocks Application
Overall Market Trends:
Despite continuous gains throughout the week, stocks retreated on Friday, ending the week with mixed results. The New York Stock Exchange Composite (NYSE) etched out a small gain, rising just 41 points (+0.20%). On the other hand, the NASDAQ Composite finished the week down 103 points (-0.52%), the S&P 500 fell 14 points (-0.23%), and the Dow Jones Industrial Average posted weekly losses of 239 points (-0.54%). These results were largely influenced by foreign policy decisions and the slew of earnings reports released throughout the week.
The market initially fell on Monday after Trump enforced a 25% tariff on Canada and Mexico, as well as a 10% tariff on Chinese goods over the weekend, causing a major global sell-off. However, posts from President Trump and Mexico’s President Claudia Sheinbaum seemed to calm investors as they agreed to temporarily pause tariffs in exchange for 10,000 Mexican troops at the Mexican-American border until they can reach a more permanent deal in the coming month. These actions reinforced investors’ view that tariffs will be merely a negotiating tool used by President Trump and should not be initially overreacted to. While this did cause stocks to rebound towards the end of the session, it was not enough to offset the losses experienced earlier in the day.
Indices soared on Tuesday after a strong Palantir (NASDAQ: PLTR) earnings report sent the stock skyrocketing. Palantir Technologies, a software development company, surged 24% after the company surpassed expectations for earnings-per-share, revenue, and guidance. President Trump also agreed to a deal with Canada to halt the 25% tariff on them for a month.
Stocks continued to rally throughout Wednesday’s session, despite steep losses from Alphabet Inc. (NASDAQ: GOOG), and AMD (NASDAQ: AMD) following porous earnings reports. Nvidia (NASDAQ: NVDA) climbed 5% after Super Micro Computer (NASDAQ: SMCI) announced that their AI data center would have full production availability, causing the stock to rise 8%, and propelling indices higher. Amgen (NASDAQ: AMGN) also rose 6% after the company reported stronger-than-expected earnings.
The tech-heavy indices rose on Thursday while the Dow fell, largely due to the plethora of earnings reports. Skyworks (NASDAQ: SWKS) plummeted over 24% after announcing its quarterly earnings. Similarly, Ford Motors (NYSE: F) and Honeywell (NASDAQ: HON) declined more than 7% and 5%, respectively, after releasing poor guidance for 2025. Honeywell also announced they would split into 3 separate companies. On the other hand, Philip Morris (NYSE: PM) rose nearly 11% on the day after reporting stronger-than-expected quarterly earnings and revenue.
Stocks tumbled on Friday after tariff and inflation fears reignited, prompting an end-of-week sell-off. President Trump announced that he has plans to reciprocate tariffs with trade partners, meaning that tariff levels would rise across the board. Consumer sentiment came in at 67.8, below the 71.3 estimate. In other news, Amazon (NASDAQ: AMZN) fell roughly 4% after posting underwhelming guidance for the upcoming year.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: NFIB optimism index
Wednesday: Consumer price index (CPI); Core CPI
Thursday: Initial jobless claims; Producer price index (PPI); Core PPI
Friday: Import price index
Future Earnings Reports: