Market Recap: S&P 500 Nears Record High as Stocks Rally on Tariff Delay and Strong Earnings
The U.S. stock market demonstrated remarkable resilience on Thursday, February 13, 2025, as major indexes surged despite earlier concerns about inflation and potential trade tensions. The S&P 500 closed tantalizingly close to its all-time high, while the Dow Jones Industrial Average and Nasdaq Composite also posted significant gains.
Market Performance
The S&P 500 (SPX) rose 63.10 points, or 1%, to close at 6,115.07, just shy of its record close of 6,118.71 set on January 23, 2025.
Key Drivers
Several factors contributed to the day’s positive market sentiment:
1. Tariff Delay: President Donald Trump’s announcement of reciprocal tariffs was met with a muted market response, as implementation may not occur until at least April 1, 2025. This delay provides countries with an opportunity to lower their tariffs on U.S. goods, potentially mitigating the impact of retaliatory measures.
2. Strong Corporate Earnings: Companies such as MGM Resorts International, GE HealthCare Technologies, and Molson Coors Beverage reported better-than-expected profits, boosting investor confidence.
3. Economic Data: Despite a higher-than-expected Producer Price Index (PPI) reading, which showed wholesale inflation rising 0.4% in January, the market remained optimistic.
Notable Stock Movements
Several stocks made significant moves on Thursday:
– Nvidia (NVDA): The AI chip giant saw its shares rise more than 3%, helping to lift the tech-heavy Nasdaq.
– Tesla (TSLA): The electric vehicle manufacturer’s stock climbed over 4%.
– Apple (AAPL): The tech giant’s shares gained more than 1%.
– AppLovin (APP), Cisco (CSCO), Dutch Bros (BROS), and Robinhood (HOOD): These companies saw double-digit percentage gains following their earnings reports.
– Reddit (RDDT) and The Trade Desk (TTD): Both stocks declined after their respective earnings releases.
Upcoming Market Events
Investors should keep an eye on these upcoming events that could impact market performance:
1. Weekly jobless claims data, expected to show 215,000 initial claims.
2. Continuing claims, estimated at 1.88 million.
3. U.S. Treasury’s sale of $22 billion in 30-year notes.
4. Earnings reports from major companies such as Airbnb (ABNB), DoorDash (DASH), and Roku (ROKU) after market close.
International Markets
Global markets also showed strength, with European indices reaching new highs:
– Germany’s DAX surged 1.66% to a record 22,515.
– The pan-European STOXX 600 index is on track for its sixth consecutive session of intraday record highs.
In Asia, Japan’s Nikkei Index jumped 1.28% to 39,461, while Chinese markets saw modest declines.
Looking Ahead
As the market approaches new record highs, investors will be closely monitoring the implementation of reciprocal tariffs, ongoing corporate earnings reports, and economic indicators for signs of continued growth or potential headwinds. The delayed implementation of tariffs and strong corporate performances have provided a boost to market sentiment, but concerns about inflation and interest rates remain key factors to watch in the coming weeks.
With the S&P 500 on the brink of a new all-time high and the Nasdaq showing strong momentum, market participants will be eager to see if this rally can sustain itself in the face of evolving economic conditions and geopolitical developments.
