Wall Street closed February on a high note, with major U.S. stock indexes rallying Friday to offset earlier losses. The S&P 500 surged 1.6%, closing at 5,954.50, while the Dow Jones Industrial Average climbed 1.4% to 43,840.91. The Nasdaq Composite also advanced 1.6%, ending at 18,847.28.
This robust performance was driven by a rebound in technology stocks, notably Nvidia, which recovered 3.9% after a significant decline the previous day. The rally helped mitigate concerns over recent economic data and trade tensions.
Treasury yields declined following a report indicating a slight deceleration in inflation and a reduction in consumer spending. The yield on the 10-year Treasury note fell to 4.20% from 4.26% the day before, suggesting increased demand for government bonds as investors reassessed economic growth prospects.
Despite Friday’s gains, the S&P 500 and Nasdaq posted weekly losses of 1% and 3.5%, respectively, while the Dow managed a 1% weekly gain. Year-to-date, the S&P 500 is up 1.2%, and the Dow has risen 3%, but the Nasdaq and Russell 2000 are down 2.4% and 3%, respectively.
European markets
European markets outperformed their U.S. counterparts in February, with the UK’s FTSE 100 achieving a 1.6% monthly gain, Germany’s DAX rising 3.8%, and France’s CAC 40 climbing 2%. This resilience came despite President Trump’s threats to impose new trade tariffs, as investors remained optimistic about potential trade deals.
In contrast, Asian markets experienced declines due to tariff concerns. Trade policy uncertainty has led to increased volatility in global markets, and investors are closely monitoring developments.
Bitcoin
Bitcoin also faced a turbulent month, entering bear market territory after falling 20% from its recent high. The cryptocurrency was set for its biggest weekly fall in over two years, dropping 7% to $78,273, its lowest since November 10.
Analysts suggest the market’s recent volatility is a reaction to mixed economic signals and geopolitical tensions. While the deceleration in inflation offers some relief, concerns over consumer spending and potential trade wars continue to weigh on investor sentiment.
Looking ahead
Looking ahead, investors will closely watch upcoming economic reports and policy decisions. The Federal Reserve’s stance on interest rates will be particularly scrutinized in light of the latest inflation data. Additionally, developments in international trade relations, especially regarding tariffs, are expected to influence market trajectories in the coming weeks.
In summary, while February presented challenges for the stock market, the month’s end rally provided a positive outlook. Market participants remain cautiously optimistic, balancing encouraging economic indicators against ongoing geopolitical uncertainties.
Anna Kim is a media reporter for the Rockland Daily News, covering the business of Rockland County and digital disruption in the entertainment industry. She has been a member of the Company Town team for more than a decade. She previously wrote for the Miami Herald and the Palm Beach Post. A native of Wyoming, she is a graduate of the University of Colorado and Columbia University