Stock Market Today: Indexes Near Record Highs Amid Tariff Developments and Economic Data
As of Friday, February 14, 2025, the U.S. stock market continues to show resilience, with major indexes hovering near record highs. This comes in the wake of President Donald Trump’s recent executive order on tariffs and the release of key economic data that has kept investors on their toes.
Market Performance
The stock market has demonstrated remarkable strength in recent trading sessions. On Thursday, February 13, the Nasdaq Composite (NDAQ) surged 1.5%, while the S&P 500 (SPX) gained 1%, closing just shy of a record high. The Dow Jones Industrial Average (DJIA) also made significant strides, advancing 0.8% and positioning itself merely 0.7% away from its all-time peak.
As of early trading on Friday, February 14, futures on the Nasdaq 100 (NDX), Dow Jones Industrial Average (DJIA), and S&P 500 (SPX) were up 0.09%, 0.01%, and 0.07% respectively, indicating a steady open for the day.
Economic Indicators and Federal Reserve Outlook
The market’s recent performance has been influenced by several key economic indicators:
1. Producer Price Index (PPI): The PPI for final demand rose 0.4% in January, slightly higher than economists’ expectations of 0.3%. However, this increase was lower than December’s upwardly revised 0.5% gain.
2. Consumer Price Index (CPI): Wednesday’s CPI data showed the largest acceleration in nearly 1.5 years, raising concerns about inflation.
3. Jobless Claims: U.S. initial jobless claims fell by 7,000 to a seasonally adjusted 213,000, slightly below the expected 215,000, indicating a stable job market.
These mixed economic signals have complicated the Federal Reserve’s path toward a neutral interest rate. Market expectations for rate cuts have been pushed back, with a 50% chance of at least a 25 basis point cut not priced in until July, according to CME’s FedWatch Tool.
Tariff Developments
President Trump’s recent executive order on reciprocal tariffs has been a significant factor in market movements. While the order aims to impose duties on countries that levy tariffs on U.S. imports, the implementation has been delayed, providing some relief to investors concerned about an escalating global trade war.
Major Stock News
Several companies have made headlines with their recent performances and announcements:
1. Applovin (APP): The stock surged 24% following impressive Q4 results.
2. Crocs (CROX): Shares jumped 23.9% after better-than-expected Q4 results.
3. GameStop (GME): The stock rose 7.4% in extended trading on news of potential cryptocurrency investments.
4. Airbnb (ABNB): Shares leaped 14.2% after strong fourth-quarter results.
On the downside, companies like Reddit (RDDT), Deere (DE), The Trade Desk (TTD), and Datadog (DDOG) saw declines following their earnings reports.
Upcoming Market Events
Investors are closely watching several upcoming events that could impact market direction:
1. U.S. Retail Sales and Industrial Production Reports: Due for release on February 14, these reports will provide insights into consumer spending and overall economic activity.
2. Earnings Reports: Companies scheduled to release their quarterly numbers include Moderna (MRNA), Magna (MGA), Fortis (FTA), and AMC Networks (AMCX).
Investor Sentiment
Despite the overall positive market performance, there are signs of caution among investors. U.S. equity funds experienced net outflows of $2.25 billion in the week through February 12, marking the second consecutive week of withdrawals. This trend is attributed to rising inflation concerns, weaker economic data, and uncertainties surrounding the new tariff policies.
Global Market Outlook
The impact of U.S. market trends is reverberating globally. Asian markets showed mixed results, with the Hang Seng Index rallying 3.53%, while Japan’s Nikkei and Topix indices experienced slight declines. European markets opened lower on Friday, as traders assessed the potential impact of U.S. tariffs on European growth.
As the market navigates through these complex economic and political landscapes, investors remain vigilant, balancing optimism from strong corporate earnings with caution over inflationary pressures and trade policy uncertainties. The coming weeks will be crucial in determining whether the current rally can sustain its momentum and push major indexes to new record highs.
