Stock Market Update: Nasdaq Achieves Best Week of 2025 Amid Mixed Performance in Major Indices
By Rian Howlett, Karen Friar, and Ines Ferré
February 14, 2025
The U.S. stock market closed on a mixed note on Friday, with the Nasdaq Composite achieving a record high and finishing its best week of 2025. Both the Dow Jones Industrial Average and the S&P 500 indices secured their third consecutive weekly gains, though with varying performances leading into the extended weekend.
Nasdaq Rises to New Heights
The Nasdaq Composite (^IXIC) gained 0.4% during Friday’s trading session, marking a successful close for the week. Its upward momentum reflects investor confidence, particularly in the technology sector, with major players such as Nvidia (NVDA), Apple (AAPL), and Meta (META) driving market performance. The week was characterized by significant fluctuations in stock prices, influenced by new tariff announcements, inflation data, and retail sales figures, which ultimately fell short of analysts’ expectations.
Dow and S&P 500 Performance
In contrast to the Nasdaq’s rise, the S&P 500 (^GSPC) experienced a slight decline, finishing just below the flatline at the end of the trading day. The Dow Jones Industrial Average (^DJI) decreased approximately 0.3%, countering the strong gains from the previous day. The market’s overall performance signals a cautious approach by investors in response to recent economic reports and policy shifts.
Economic Data and Market Reactions
The week culminated with an unexpected report on retail sales, revealing a 0.9% drop in January—well below the anticipated 0.2% increase. This figure marks the largest monthly decline in retail sales in over a year, stirring concerns regarding consumer spending amidst ongoing inflationary pressures, which have dampened hopes of imminent interest rate cuts by the Federal Reserve.
Moreover, economic watchers noted a plethora of policy changes introduced by the Trump administration this week, including new tariffs on steel and aluminum, discussions surrounding peace talks with Russia, and an ongoing evaluation of the CHIPS Act pertaining to semiconductor projects.
Despite the mixed results, the market saw promising activity on Thursday, driven by the announcement of a delay in the implementation of reciprocal tariffs. This welcome news buoyed investor sentiment, with the anticipation of reduced trade tensions contributing to stock performance leading into the weekend.
Highlights from Individual Stocks
Several notable stocks emerged as significant movers on Friday. Shares of Airbnb (ABNB) surged after exceeding analysts’ earnings projections, indicating a robust recovery in the travel sector. GameStop (GME) also made headlines as speculation arose about the gaming retailer’s potential entry into the cryptocurrency space.
Conversely, biotech firm Moderna (MRNA) faced challenges, reporting a larger-than-expected earnings loss that triggered a decline in its stock price. Analysts will closely monitor the company’s performance as it navigates the turbulent market environment.
Conclusion and Market Outlook
As the stock market prepares for a break this coming Monday in observance of President’s Day, traders and investors will be looking ahead to see how the dynamics of inflation, consumer spending, and policy developments will unfold in the weeks to come. The markets are scheduled to reopen on Tuesday, and analysts anticipate that the ongoing economic trends will continue to shape market movements throughout February.
With big tech leading the week’s gains and notable stock performances shaping investor sentiment, the outlook remains cautiously optimistic as analysts and traders remain vigilant amid the evolving economic landscape.
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