Market Recap: Stocks Rise on Mixed Economic Data and Potential Peace Talks

Major Indexes Close Higher Amid Inflation Concerns and Geopolitical Developments

On Thursday, February 13, 2025, U.S. stock markets closed higher as investors digested mixed economic data and news of potential peace talks between Russia and Ukraine. The major indexes all posted gains, with technology stocks leading the way.

Market Performance

The Nasdaq Composite led the gains, rising 0.91% to close at 19,828.43 points. The S&P 500 followed with a 0.56% increase, ending the day at 6,085.80 points, while the Dow Jones Industrial Average added 0.31%, reaching 44,505.08 points.

Economic Data and Inflation Concerns

The day’s trading was influenced by the release of the Producer Price Index (PPI) data, which showed a 0.4% increase in January. While this was higher than economists’ expectations, it represented a slight deceleration from December’s 0.5% rise. The core PPI, which excludes volatile food and energy prices, increased by 0.3%.

Bill Adams, chief economist for Comerica Bank, commented: “The PPI report was hot, but probably lifted by temporary factors and residual seasonality. It also saw flat or negative readings on most types of healthcare services, which points to a cooler core PCE inflation report for January than the month’s core CPI.”

This data led to a lowering of inflation forecasts, easing some concerns about aggressive monetary policy tightening by the Federal Reserve. Currently, traders are pricing in a single 25-basis-point rate cut from the central bank this year, with expectations for a move in September.

Geopolitical Developments

Adding to the positive market sentiment, U.S. President Donald Trump announced that Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy had expressed a desire for peace in separate phone conversations. This news sparked some risk-taking among investors, contributing to the day’s gains.

Sector Performance and Notable Stocks

Ten out of eleven S&P 500 sectors traded higher, with information technology and materials leading the gains. Among individual stocks:

1. Tesla (TSLA) outperformed, jumping 4.8%.
2. MGM Resorts International (MGM) surged 15.6% after beating fourth-quarter profit and revenue estimates.
3. Trade Desk (TTD) plummeted 31.7% following a disappointing first-quarter revenue forecast.

Upcoming Market Events

Investors are closely watching for the upcoming release of the core Personal Consumption Expenditures (PCE) Price Index later this month. This data is crucial as it is the Federal Reserve’s preferred inflation gauge and could influence future monetary policy decisions.

Additionally, market participants are anticipating President Trump’s press conference scheduled for 1 p.m. EST, where he is expected to detail the latest in a series of tariffs on imports to the U.S.

Corporate News

In other corporate news, sports car manufacturer Porsche announced plans to cut 1,900 jobs, signaling potential shifts in the automotive industry. Meanwhile, Japanese automakers Honda, Nissan, and Mitsubishi ended talks for a business integration but will continue collaboration on electric vehicles and autonomous driving.

Looking Ahead

As the market digests these developments, investors will be keenly watching for further economic indicators and corporate earnings reports. The interplay between inflation data, geopolitical events, and corporate performance will likely continue to drive market sentiment in the coming days.

The key takeaway: Despite ongoing inflation concerns and geopolitical tensions, the U.S. stock market showed resilience on Thursday, with all major indexes posting gains. The mixed economic data and potential for diplomatic progress in Eastern Europe provided a boost to investor confidence, setting a cautiously optimistic tone for the days ahead.