Mixed Results on Wall Street as Traders Digest Economic Data

New York, February 12, 2025 – The New York Stock Exchange experienced a day of mixed results this past Friday, as investors took a moment to reassess after a tumultuous week marked by inflation data and discussions surrounding tariffs. The trading session concluded with the Dow Jones Industrial Average slipping by 0.37%. In contrast, the Nasdaq Composite Index rose by 0.41%, while the S&P 500 Index remained largely flat, closing down just 0.01%.

Investors Pause Amid Economic Indicators

Sam Stovall, Chief Investment Strategist at CFRA, noted that ‘the market has been in a kind of ebb and flow’ throughout the final session of the week, pointing out the lack of a clear predominance of risk appetite among investors. The trading atmosphere was further influenced by upcoming plans for a long holiday weekend, as U.S. markets will be closed on Monday in observance of President’s Day.

The latest economic data released on Friday revealed a surprise downturn in U.S. retail sales for January, which decreased by 0.9% to $723.9 billion. This drop is significant as it marks the largest monthly decline in nearly two years, impacted by adverse weather conditions as well as wildfires in California. Analysts had anticipated a lesser decrease of only 0.2%, based on consensus estimates compiled by MarketWatch.

According to Stovall, the weak consumer spending data may ‘reopen the door’ for a potential interest rate cut by the Federal Reserve later this summer. This prospect comes after a week where inflationary concerns, represented by a notably high Consumer Price Index (CPI), seemed to dampen such expectations.

Bond Market Reactions and Tariff Discussions

In the bond market, yields on ten-year U.S. Treasury bonds saw a slight decrease, settling at 4.48% as of 21:40 GMT, down from 4.53% the previous day. Market participants continue to monitor developments regarding U.S. tariff policies, even as Stovall indicated that many consider these moves to be primarily negotiation tactics.

President Donald Trump recently announced plans to implement ‘reciprocal tariffs’ aimed at restoring ‘fairness’ in international trade relations. However, the timeline for these tariffs remains vague. Howard Lutnick, the incoming Secretary of Commerce, stated that a comprehensive review of trade disparities with various countries is expected to be completed by April 1, potentially allowing action to commence soon thereafter.

In addition, Trump mentioned his consideration of imposing new tariffs on imported cars, targeted for around April 2. Since the beginning of his second term, the president has enacted an additional 10% tariff on Chinese goods and intends to impose a 25% tax on steel and aluminum imports.

Key Stock Movements

Amidst these broader market trends, several individual stocks showed notable movement. Dell Technologies saw its shares increase by 3.74% following reports of a prospective agreement with Elon Musk’s AI startup, xAI, where Dell is expected to sell approximately $5 billion worth of servers dedicated to artificial intelligence.

Airbnb shares surged by 14.45% following stronger-than-expected quarterly results, while Alibaba, the Chinese e-commerce giant, gained 4.34% on news that its artificial intelligence model would soon be integrated into Apple devices sold in China. The streaming service Roku also experienced a dramatic increase, with shares soaring 14.14% after reporting revenues that exceeded analysts’ expectations.

Additionally, GameStop’s stock climbed by 2.51%, spurred by reports suggesting that the company is exploring investments in cryptocurrencies, including Bitcoin.

As the market approaches a holiday break, investors remain vigilant, weighing economic indicators against ongoing discussions surrounding tariffs and their potential impact on the economy.