Stock Market Wrap: Nasdaq Sees Best Week of 2025; Dow and S&P 500 Experience Third Straight Weekly Gains
February 14, 2025 – By Rian Howlett, Karen Friar, and Ines Ferré
The U.S. stock market concluded a tumultuous week on a mixed note, with the Nasdaq Composite recording its best performance of 2025. The Nasdaq gained 0.4%, while both the Dow Jones Industrial Average and S&P 500 Index experienced a slight downward adjustment, marking their third consecutive weekly gain.
Mixed Market Performance
In Friday’s trading session, the Nasdaq 100 (^NDX) closed at a record high, buoyed by several significant factors including tariff updates and inflation reports. The S&P 500 (^GSPC) dipped slightly by 0.1%, and the Dow (^DJI) fell approximately 0.3%. Notably, the declines in retail sales for January, which dropped by 0.9%, significantly impacted market sentiment. This figure was notably below analysts’ expectations of a 0.2% increase, wrapping up a week rich in economic data and updates on inflationary pressures.
Key Economic Indicators
Investors are particularly attentive to inflation data, especially after recent reports showed rising prices that could influence Federal Reserve policy and interest rate decisions. With retail sales showing a substantial decline, traders expressed caution, considering how this might affect consumer spending moving forward.
Throughout the week, the markets reacted to a series of announcements from the Trump administration, including the introduction of 25% tariffs on steel and aluminum and an ongoing review of policies surrounding the CHIPS Act which supports semiconductor manufacturing in the U.S. Investor sentiment has been mixed, weighing these complex factors.
Tariff Updates and Economic Policies
The stock market gained momentum earlier in the week when reports surfaced regarding a delay in the implementation of reciprocal tariffs. However, President Trump indicated new tariffs on automobiles were forthcoming, with a planned announcement slated for April 2. This uncertainty continues to stir speculation and unease among investors, affecting overall market dynamics.
Big Movers in the Market
Several companies garnered attention during Friday’s session. Airbnb (ABNB) shares surged after reporting earnings that surpassed analyst predictions, highlighting resilience in the travel sector. Meanwhile, shares of GameStop (GME) experienced an uptick amid rumors of potential ventures into bitcoin, while Moderna (MRNA) shares plummeted following a disappointing earnings report as the vaccine manufacturer struggles to regain investor confidence.
Tech Sector Drives Gains
Tech giants emerged as key players, contributing to the Nasdaq’s strong performance. Nvidia (NVDA) and Apple (AAPL) both registered gains above 6% for the week, benefiting from bullish sentiment surrounding technology stocks. The "Magnificent Seven" cohort, which includes other tech leaders, also experienced gains, showcasing a robust interest in technology amidst ongoing market fluctuations.
Looking Ahead
As the stock market prepares to close for President’s Day, traders are likely to continue monitoring developments surrounding inflation and potential government policies that could reshape economic expectations. The market will resume trading on Tuesday, February 17, 2025. As investors digest these market shifts, the interplay of economic data and political actions will remain critical in shaping the future outlook for U.S. stocks.
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