The trader works on the floor of the New York Stock Exchange on February 13, 2025.
Daniel Devries | CNBC
S&P 500 It was little different to Monday as the market tried to bounce back after a sudden sale on Friday.
The broad market index fell approximately 0.1%. Dow Jones Industrial Average Rose 151 points, or 0.4%. meanwhile, Nasdaq A decrease of 0.6%.
Stocks of major high-tech companies are under pressure. Nasdaq Composite The day was lowered, temporarily entering the negative territory of 2025. Palantir He lowered the Nasdaq and fell 10%. Microsoft It has broken out by about 1% after an analyst report from TD Cowen, saying the company has cut spending on data centers and is causing fear of weakness in the artificial intelligence trade.
The move follows last week's stock market fall. The Dow and Nasdaq lowered the week by more than 2%, while the S&P 500 exceeded 1%. On Friday alone, the Dow pulled back more than 700 points, with the S&P 500 and Nasdaq down 1.7% and 2.2% respectively.
These declines came after data in February raised concerns about the state of the US economy. The purchase manager's index number indicated that the US Services division was contracted for the month, but the University of Michigan's Consumer Sentiment Index is weaker than expected.
The upcoming weeks include important readings on corporate revenue and the economy. Revenue reports from Home Depot and Lowe on Tuesday and Wednesday respectively give investors a better sense of how US consumers are carrying. Nvidia's revenue report on Wednesday evening could have further impact. Chipmakers associated with artificial intelligence remain one of the largest stocks by market capitalization.
Friday then offers a January read of the Personal Consumption Expense Index, the Federal Reserve's preferred inflation measure.
“PCE on Friday January is very important to the market. This is because other January inflation measures, such as CPI and PPI, became very strong in January, so inflation was actually in fact in early 2025. “It helps to see if it has skyrocketed,” said Clark Bellin, president and chief investment officer at Bellwether Wealth.
But “regardless of what PCE said on Friday, the Federal Reserve is likely to be pending interest rate decisions for at least the next six months,” Belin added.
Fix: An earlier version of this story incorrectly stated last week's Nasdaq Composite move.
