Market Recap: Wall Street Rebounds on Friday, February 28, 2025, Amid Inflation Data and Tariff Concerns
Major Indexes Close Higher, but February Losses Loom
Wall Street ended the week on a positive note on Friday, February 28, 2025, as investors digested the latest inflation data and continued to grapple with concerns over potential new tariffs. The major indexes rallied, partially recovering from Thursday’s sharp declines, but remained on track for monthly losses.
The Dow Jones Industrial Average (DJI) rose 601.41 points, or 1.4%, to close at 43,840.91. The S&P 500 jumped 92.93 points, or 1.6%, finishing at 5,954.50, while the Nasdaq Composite climbed 302.86 points, or 1.6%, to end at 18,847.28.
Despite Friday’s gains, the major indexes are still poised to record losses for February. The recent volatility has been attributed to a combination of factors, including concerns over the health of the economy and uncertainty surrounding policies pursued by the Trump administration.
Inflation Data Eases Concerns, But Tariff Threats Loom
A closely watched inflation report released on Friday showed that price pressures eased last month, providing some relief to investors. This data helped boost market sentiment, contributing to the day’s gains.
However, the specter of new tariffs continues to hang over the market. President Donald Trump recently announced plans to impose 25% tariffs on Canada and China, set to take effect on March 4. Additionally, China, which is already facing 10% tariffs, may be subject to an additional 10% levy. These developments have raised concerns about a potential global trade war and its impact on consumer confidence.
Tech Sector Rebounds After Thursday’s Sell-Off
The technology sector, which experienced a significant sell-off on Thursday following Nvidia’s (NVDA) earnings report, showed signs of recovery on Friday. Nvidia, a key player in the AI chip market, saw its shares rebound, rising 3.9% and providing a boost to the broader tech sector.
Other notable tech stocks also contributed to the day’s gains, helping to lift the Nasdaq Composite and the S&P 500. The Technology Select Sector SPDR (XLK) had declined 3.6% on Thursday but showed resilience in Friday’s trading session.
Economic Indicators and Upcoming Events
Investors are closely monitoring several economic indicators and upcoming events that could impact market performance in the coming days:
1. Jobless Claims: The latest report showed initial jobless claims totaling 242,000 for the week ending February 22, an increase of 22,000 from the previous week’s revised level.
2. GDP Growth: The U.S. GDP grew 2.3% in the fourth quarter of 2024, matching initial estimates and analysts’ expectations.
3. Housing Market: Pending home sales declined 4.6% sequentially in January and 5.2% from year-ago levels, according to the National Association of Realtors.
4. Personal Consumption Expenditure (PCE) Inflation Reading: Investors are eagerly awaiting this key inflation gauge, which is the Federal Reserve’s preferred measure of inflation. The report is scheduled for release in the coming days and could provide insights into potential future interest rate decisions.
Major Stock Movements
Several individual stocks made significant moves on Friday:
– AES Corporation (AES): The energy company’s stock jumped 11.7% after reporting better-than-expected quarterly profits and strong demand from AI data centers and new U.S. manufacturing plants.
– Signet Jewelers (SIG): Shares rose 5.2% following news that investment firm Select Equity Group had acquired a nearly 10% stake in the retailer and is pushing for a potential sale or other measures to boost the stock price.
– Dell Technologies (DELL): The computer technology company’s stock dropped 4.7% despite reporting stronger-than-expected quarterly profits, as revenue fell short of analysts’ expectations.
As the market heads into March, investors will be closely watching for developments on trade negotiations, further economic data releases, and corporate earnings reports to gauge the overall health of the economy and potential market direction.
