On February 13, 2025, traders worked on the bustling floor of the New York Stock Exchange. It seems that Friday brought a small boost to stock futures. This uptick followed the release of the latest personal consumption expenditures (PCE) price index, which matched expectations.
The S&P 500 futures climbed 0.3%. Dow Jones futures jumped 224 points, or 0.5%. Meanwhile, Nasdaq-100 futures gained 0.2%. Despite this positive news, the major averages were still on track for losses this week and for the month.
The PCE report indicated that inflation eased a bit in January. The PCE price index, the Federal Reserve’s preferred measure of inflation, increased by 0.3% for the month and 2.5% over the year. Core PCE, which excludes food and energy prices, also saw a 0.3% rise monthly and a 2.6% year-over-year increase. These figures aligned with Dow Jones estimates.
Amidst this, concerns persist. President Donald Trump’s new tariffs, along with worrying economic reports, have raised doubts in the market. Investors were shaken by a sharp decline of 8.5% in Nvidia shares following its earnings report. By Friday morning, Nvidia shares had fallen an additional 1.8%.
Michael Landsberg, the chief investment officer at Landsberg Bennett Private Wealth Management, noted, “February is usually a volatile month for stocks, and that trend is happening right now.” He added that investors are looking for more certainty about tariffs, inflation levels, and consumer spending.
This month has been challenging for the Nasdaq Composite, which has dropped roughly 5.5%, driven by a 5% fall just this week. The index could be facing its worst month since September 2023.
In terms of weekly performance, the S&P 500 has decreased 2.5%, and about 3% overall in February. This puts the index on track for its worst week since September 2024 and the biggest monthly drop since April 2024.
On the other hand, the Dow has shown relatively smaller losses, down 0.4% for the week and nearly 3% for the month. In this fluctuating market, every day brings new challenges and opportunities for investors to consider.
Check out this related article: Asia-Pacific Markets Decline: Trump Greenlights Tariffs Set to Impact Next Week’s Trade Landscape
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