Financial Update: Week of February 24, 2025
Hope you are doing well. Last week brought fresh S&P 500 closing highs early in the week, with economic uncertainty dominating mood and headlines as the week progressed. Read on for a bite-sized overview of what you should know.
Weekly Stock Index Performance
Major U.S. stock market indexes fell for the week ending 02/21.
- The S&P 500 decreased by 1.66%.
- The Nasdaq 100 traded lower by 2.26%.
- The Dow Jones Industrial Average decreased by 2.51%.
S&P 500 Highs, Retreat
- The holiday-shortened trading week started well, with the S&P 500 reaching all-time closing highs early in the week. Catalysts for the rise early in the week included Super Micro Computer, while shares of Intel and Palantir were volatile.
- Sentiment shifted later in the week as Walmart issued a weaker-than-expected forecast. The forecast added to the uncertain economic tone on top of some softer-than-expected consumer sentiment and existing home sales data.
Economic Uncertainties
- Tariff uncertainty is still the talk of the town, and the markets have been resilient since the inception of tariff talks.
- Perhaps the weight of uncertainty caught up to the financial markets towards the end of last week, with softer consumer and flash data catching up with markets.
Flash PMI & Consumer Sentiment
- Tariff uncertainty and inflation expectations factored into consumer outlooks in February, as U.S. consumer sentiment fell to 15-month lows. Households predict inflation will be running at 4.3% in the next year.
- February Flash Purchasing Managers’ Index (PMI) data showed business activity stalling in February, with S&P Global’s flash U.S. Composite PMI Output Index declining to 50.4 after a reading of 52.7 in January. The data tracks the manufacturing and services sectors. It is the lowest reading since September 2023.
The Week Ahead
- We have a heavier load of economic data this week, with additional consumer data in the form of consumer confidence, gross domestic product (GDP) data, and Core Personal Consumption Expenditures (PCE) Index data — the Fed’s favorite inflation gauge.
- Eyes will be peeled on the consumer confidence data after the recent consumer data showing softening. In addition, there is plenty of Fedspeak on the calendar, with several FOMC committee members speaking at various conferences.
That’s it for this week’s update! If you’d like to explore these topics further or have any other questions or needs as the week unfolds, don’t hesitate to respond to this email or give us a call. I am always here as a resource.
Disclosure:
This material provided by Levitate. Levitate is not affiliated with Valmark Securities, Inc. and Valmark Advisers, Inc. Indices are unmanaged and do not incur fees, one cannot directly invest in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Past performance does not guarantee future results. The information provided has been derived from sources believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete analysis of the material discussed, nor does is constitute an offer or a solicitation of an offer to buy any securities, products or services mentioned.
Disclosure:
This material provided by Levitate. Levitate is not affiliated with Valmark Securities, Inc. and Valmark Advisers, Inc. Indices are unmanaged and do not incur fees, one cannot directly invest in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Past performance does not guarantee future results. The information provided has been derived from sources believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete analysis of the material discussed, nor does is constitute an offer or a solicitation of an offer to buy any securities, products or services mentioned.