Stock Market Today: Dow, S&P 500, and Nasdaq Rally to Cap Volatile Week Amid Losing Month
By Rian Howlett, Karen Friar, and Hamza Shaban
Updated Fri, Feb 28, 2025, 4:06 PM
After a turbulent week and a challenging month for investors, the major U.S. stock indexes rallied on Friday, providing a relief boost despite lingering economic and geopolitical uncertainties.
Market Performance: Gains After Earlier Losses
On Friday, the S&P 500 surged 1.6%, the Nasdaq Composite rose approximately 1.5%, and the Dow Jones Industrial Average climbed 1.3%. This rebound erased earlier losses during the trading session, delivering a welcome end to a difficult February.
However, despite Friday’s rally, the broader picture for February shows notable declines. The Nasdaq fell nearly 5% over the month, while the S&P 500 and Dow each dropped around 2%. These losses reflect investor concerns stemming from multiple tariff announcements and ongoing economic pressures.
Economic Data: Inflation Cools but Consumer Spending Declines
Wall Street found some comfort in the latest inflation data, as the Personal Consumption Expenditures (PCE) index — the Federal Reserve’s preferred inflation gauge — indicated that "core" inflation (excluding food and energy prices) cooled to 2.6% annually in January, matching economists’ expectations. This alleviated some fears of sustained inflationary pressures.
Yet, consumer spending, a key driver of economic growth, unexpectedly declined by 0.2% in January. This drop fell short of forecasts for a 0.1% increase and contrasted with a 0.8% rise in December. The reduction in spending raised concerns about a potential economic slowdown.
Geopolitical Developments: Tensions in the White House and Trade Worries
Adding to market volatility, a dramatic encounter unfolded at the White House when President Donald Trump, Vice President JD Vance, and Ukrainian President Volodymyr Zelensky engaged in a contentious Oval Office meeting. On camera, the American leaders criticized Zelensky, labeling him “disrespectful” for what they deemed insufficient gratitude over U.S. support in Ukraine’s ongoing conflict with Russia. This confrontational exchange left a proposed economic deal between the U.S. and Ukraine in limbo.
Investors also grappled with anxieties over renewed trade tensions as President Trump prepared to implement an additional 10% tariff on Chinese imports starting Tuesday. Beijing responded swiftly with warnings to take “all necessary measures,” escalating fears of a potential trade war. Trump’s trade policy overhaul includes plans to impose further tariffs on Mexico, Canada, and the European Union, fueling market unease.
Cryptocurrency Sell-off Continues
The cryptocurrency market mirrored the broader risk-off sentiment. Bitcoin plunged 7% on Friday to around $78,495, marking its lowest closing since November and compounding its worst monthly performance since 2022. The digital currency has dropped approximately 25% from its recent record high, impacted by recession fears and the uncertain policy environment.
Looking Ahead
While Friday’s market rally may provide a momentary bullish respite, investors remain cautious. The interplay of geopolitical tensions, uncertain trade policies, and mixed economic data continues to inject volatility into the markets. Market participants will closely watch upcoming developments around tariffs, inflation trends, and global political dynamics as they assess the likely trajectory of the economy and financial markets.
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Sources: Yahoo Finance, Market Data as of February 28, 2025