Stock Market Update Tuesday February 25, 2025 Stocks experienced another volatile day, facing significant pressure in the late morning before making a strong recovery, only to lose some momentum before the market closed. Despite recent declines, the S&P 500 (SPX) is still about 3.2% below its all-time highs. However, a noticeable shift in market sentiment has occurred over the past few days, with a worrying trend of investors moving from growth stocks to more defensive ones. Economic growth concerns continued to impact the market, highlighted by a sharp decline in Consumer Confidence—the largest drop from month to month since 2021. The Dow Jones Industrial Average (DJIA) ended the day in the positive, buoyed by strong earnings from Home Depot (HD) and a rebound in Walmart (WMT). However, bank stocks declined again, with JPMorgan Chase (JPM) down approximately 7% over the past week. By the close, the SPX was down 0.5%, the Nasdaq (QQQ) fell 1.25%, and the Russell 2000 (IWM) decreased by 0.4%. The tech-heavy Nasdaq has now dropped from its all-time highs to a negative return for the year in just a few days.
Away From Stocks: In contrast, Treasury yields were very strong, with 10-year yields falling by 10 basis points to 4.3%. The iShares 20+ Year Treasury Bond ETF reached new highs for the year. WTI crude oil prices dropped to $69 per barrel, gold prices pulled back to $2,916 per ounce, bitcoin remained close to $88,000 after a sharp drop overnight, and the VIX ended around 19.
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