Stock Market Today: Indexes Hold Ground Amid Inflation Concerns and Geopolitical Developments

Market Performance and Economic Data

On Thursday, February 13, 2025, the U.S. stock market showed resilience in the face of mixed economic data and geopolitical developments. As of the latest update, the major indexes were holding their ground, with the S&P 500 up 0.2%, the Dow Jones Industrial Average gaining 0.3%, and the Nasdaq Composite rising 0.3%.

The market’s attention was focused on the release of the Producer Price Index (PPI) for January, which came in hotter than expected at 0.4% month-over-month, surpassing economists’ projections of a 0.3% increase. This data follows Wednesday’s Consumer Price Index (CPI) report, which also showed higher-than-anticipated inflation, raising concerns about the Federal Reserve’s future interest rate decisions.

Federal Reserve Outlook and Interest Rates

The recent inflation data has led to a shift in market expectations regarding the Federal Reserve’s monetary policy. Traders are now pricing in only one 25-basis-point interest rate cut for the year, down from previous more optimistic projections. Fed Chair Jerome Powell, in his recent testimony to Congress, emphasized that the battle against rising prices is not yet over, suggesting a cautious approach to rate cuts in 2025.

Major Stock Movements and Corporate News

Several notable stocks are making headlines today:

1. The Trade Desk (TTD): Shares plummeted 32.47% after the ad tech firm’s first-quarter revenue forecast fell short of analysts’ expectations.

2. AppLovin Corporation (APP): The stock surged 32.46%, leading the day’s gainers.

3. Robinhood Markets (HOOD): Shares jumped 12.81% following better-than-expected fourth-quarter profit results.

4. Cisco Systems (CSCO): The network equipment maker saw its stock rise 6.2% after raising its annual revenue forecast.

5. Tesla (TSLA): The electric vehicle manufacturer bucked the trend among megacap stocks, advancing 2.5% in premarket trading.

Upcoming Market Events

Investors are keeping a close eye on several upcoming events that could impact market sentiment:

1. Earnings Reports: Key companies scheduled to report earnings include Deere & Co (DE), Howmet Aerospace (HWM), and Moody’s (MCO).

2. Economic Data: The market will be digesting the implications of today’s PPI data and looking forward to upcoming reports that could influence the Fed’s decision-making process.

3. Geopolitical Developments: Recent reports suggest potential progress in Russia-Ukraine peace talks, with both leaders expressing a desire for peace in separate phone calls with U.S. President Donald Trump. This development could have significant implications for global markets and risk sentiment.

Market Trends and Analyst Insights

Despite the recent inflation scare, stocks have managed to stay near their highs. The German DAX index has broken out to new highs, while the S&P 500 remains rangebound. This divergence in performance highlights the complex global economic landscape investors are navigating.

Analysts are closely monitoring several trends:

1. Sector Performance: Technology, traditionally a market leader, has been the worst-performing sector this year. However, some smaller tech names are breaking out while the “Big 3” (Apple, Nvidia, and Microsoft) lag.

2. Tariff Concerns: FactSet reports that the number of companies citing tariff risks on earnings calls is at its highest level since Q2 2019, indicating growing concerns about trade policies.

3. Technical Indicators: Marc Chaikin notes that the McClellan Summation A/D Index is showing potentially bullish signals for the broader market.

As the market continues to navigate through economic uncertainties and geopolitical shifts, investors remain cautiously optimistic. The resilience shown by major indexes in the face of inflation concerns suggests that market participants are still finding opportunities amidst the challenges of early 2025.