Market Recap (2/23/25)
Market Recap of the Week of Feb 17, 2025 - Feb 21, 2025
Source: Apple Stocks Application
Overall Market Trends:
Despite starting the week off relatively stable, stocks plummeted, ending the week with all four major indices finishing in the red. The New York Stock Exchange Composite (NYSE) declined 249 points (-1.24%), the S&P 500 fell 101 points (-1.65%), the NASDAQ Composite posted weekly losses of 500 points (-2.50%), and the Dow Jones Industrial Average tumbled 1,110 points (-2.49%). These results were largely influenced by new economic data and tariff concerns.
Stocks etched out small gains on Tuesday after markets were closed on Monday for Presidents’ Day. Stocks stayed flat or slightly negative throughout the day but rallied just before market close.
The market had another quiet day on Wednesday, despite constant tariff noise and a cautious federal reserve. President Trump threatened more tariffs Tuesday evening, this time a 25% tariff on imported autos, chips, and pharmaceutical goods. The release of the Federal Reserve’s minutes from its January meeting featured concerns regarding Trump’s aggressive tariff policies. It also stated that the Fed wants to see more progress on inflation before reducing rates again.
Markets started to turn on Thursday after Walmart (NYSE: WMT) reported far weaker-than-expected guidance, causing the stock to fall 6.5% and much of the market to follow in its footsteps. The company announced that it expected its fiscal sales to only grow by 3-4% in 2026. The weak guidance signals concerns about consumer spending, and therefore the health of the overall economy.
Stocks tanked on Friday after a slew of new economic data added concerns over a slowing economy and inflation rates. The University of Michigan consumer sentiment index dropped more than 10%, steeper than anticipated, to 64.7 in February. This was due to heightened inflationary concerns as a result of the increased tariffs under President Trump. The survey also listed a 3.5% 5-year inflation outlook, the highest since 1995. Existing home sales declined and the U.S. services purchasing managers' index fell into contraction territory for February. There was also a sell-off as investors did not want to go into the weekend with so much uncertainty revolving around tariffs.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: S&P Case-Shiller home price index (20 cities); Consumer confidence; Fed Vice Chair for Supervision Michael Barr speaks
Wednesday: New home sales
Thursday: Initial jobless claims; Durable-goods orders; GDP (second reading); Federal Reserve Vice Chair for Supervision Michael Barr speaks; Fed Governor Michelle Bowman speaks
Friday: Personal Consumption Expenditures (PCE) index; Core PCE; Chicago Business Barometer (PMI)
Future Earnings Reports: