Stock Market Today: Indexes Retreat from Record Highs Amid Mixed Earnings and Economic Data
The stock market experienced a pullback on Friday, February 21, 2025, as major indexes retreated from recent record highs. Investors digested a mix of corporate earnings reports, economic data, and geopolitical developments that shaped market sentiment.
Major Market Indexes
As of midday trading:
– The S&P 500 (^GSPC) was down 0.39% to 6,093.72
– The Dow Jones Industrial Average (^DJI) fell 0.91% to 43,772.61
– The Nasdaq Composite (^IXIC) slipped 0.22% to 19,917.78
– The Russell 2000 (^RUT) bucked the trend, gaining 0.10% to 2,264.11
Despite today’s decline, the S&P 500 had reached a new all-time high of 6,147.45 on Wednesday, fueled by strong fourth-quarter earnings results and an improving corporate outlook.
Earnings in Focus
Several companies reported earnings that influenced market movements:
– Walmart (WMT) shares tumbled 6% after the retail giant forecast sales and profit for the fiscal year ending January 2026 below analysts’ estimates, citing concerns about inflation-weary consumers.
– Palantir Technologies (PLTR) plunged 13% following a 10% drop the previous day. The decline was attributed to reports of potential U.S. defense budget cuts, which could impact Palantir’s government contracts.
– Nvidia (NVDA) remained relatively stable, down just 0.09% to $139.98, as investors awaited its highly anticipated earnings report next week.
– Alibaba Group (BABA) saw its U.S.-listed shares rise 8.1% after reporting robust financial results, with plans to “aggressively invest” in artificial intelligence and cloud computing infrastructure.
Upcoming Market Events
Investors are closely watching several key events that could impact market direction:
1. Federal Reserve Minutes: The release of minutes from the Fed’s January policy meeting revealed concerns about inflationary pressures from initial policy proposals by the Trump administration.
2. Tariff Announcements: President Trump has announced plans for fresh tariffs on lumber and forest products, adding to previously announced duties on imported cars, semiconductors, and pharmaceuticals.
3. Economic Data: Recent data showed a moderate increase in unemployment benefit applications, suggesting the labor market remains relatively stable.
Sector Performance and Notable Stocks
– The financial sector (^SPSY) led declines, falling 2%.
– UnitedHealth Group (UNH) was among the day’s biggest losers, dropping 9.21% to $456.15.
– Celsius Holdings (CELH) surged 26.72% to $32.35, making it one of the top gainers.
– Coinbase Global (COIN) rose 2.35% to $262.63, reflecting ongoing interest in cryptocurrency-related stocks.
Market Sentiment and Fund Flows
Despite today’s pullback, U.S. equity funds attracted inflows for the first time in three weeks, with investors buying a net $1.59 billion worth of U.S. equity funds in the week ending February 19. This shift was attributed to easing inflation concerns and strong fourth-quarter corporate earnings.
Bond funds remained popular for the seventh consecutive week, with investors adding a net $8.62 billion. Money market funds, however, saw outflows of $14.11 billion, marking the third weekly outflow in four weeks.
Looking Ahead
As the market navigates through mixed signals, investors will be closely monitoring upcoming earnings reports, economic indicators, and geopolitical developments. The resilience of consumer spending, the impact of potential tariffs, and the ongoing AI boom are likely to remain key themes influencing market sentiment in the coming weeks.
With approximately 85% of S&P 500 companies having reported fourth-quarter earnings, about 76% have posted better-than-expected results, underscoring the overall strength of corporate America despite economic uncertainties.
As always, investors are advised to maintain a diversified portfolio and consider long-term investment strategies in the face of short-term market fluctuations.
