Weekly Update – February 24, 2025
The Week on Wall Street
Stocks fell last week as concerns about sticky inflation and the pace of economic growth rattled investors.
The Standard & Poor’s 500 Index declined 1.66 percent, while the Nasdaq Composite Index dropped 2.51 percent. The Dow Jones Industrial Average also fell 2.51 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, was essentially flat (+0.04 percent).1,2
S&P 500 Hits New High, Then Slips
Following the Presidents’ Day holiday, stock prices were largely rangebound on Tuesday despite some intraday volatility. Then stocks edged higher, shaking off some new tariff talk and disappointing housing starts data. The S&P 500 marked its third record close of the year on Wednesday.3,4
On Thursday, stocks were under pressure from the start of trading after a weaker-than-expected outlook from a mega-retailer. The update reinforced some concerns that the economy may be slowing. The selling accelerated on Friday after a consumer sentiment survey showed investors are unsettled about the inflation outlook.
Friday’s decline was the worst of the young year.5
Economic Jitters
Investors were forced to navigate a week of disappointing news about the economy and inflation.
First, traders were surprised to hear about slowing demand at the country’s biggest retailer, which soured the outlook for the consumer and the economy. Then, the University of Michigan Consumer Confidence survey fell by 10 percent in February as consumers expressed concerns about higher inflation ahead of possible new tariffs.6
This combination prompted investors to move into a “risk-off” position before the weekend.
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Consumer Confidence. Fed Officials Lorie Logan and Thomas Barkin speak.
Wednesday: New Home Sales. Fed Officials Thomas Barkin and Raphael Bostic speak.
Thursday: Gross Domestic Product (GDP). Durable Goods. Weekly Jobless Claims. Pending Home Sales. Fed Balance Sheet.
Friday: Personal Consumption and Expenditures (PCE) Index.
THIS WEEK: COMPANIES REPORTING EARNINGS
Tuesday: The Home Depot, Inc. (HD), Intuit Inc. (INTU)
Wednesday: NVIDIA Corporation (NVDA), Salesforce Inc. (CRM), Lowe’s Companies, Inc. (LOW), The TJX Companies, Inc. (TJX)
Thursday: Dell Technologies Inc. (DELL)
Friday: Berkshire Hathaway Inc. (BRK.A,BRK.B)
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1. The Wall Street Journal, February 21, 2025
2. Investing.com, February 21, 2025
3. CNBC.com, February 18, 2025
4. The Wall Street Journal, February 19, 2025
5. CNBC.com, February 21, 2025
6. The Wall Street Journal, February 21, 2025