Market Highlights - 26 February 2025
U.S. Stocks Remain Weak as Markets Await Tech Earnings and Key Inflation Data
๐บ๐ธ S&P 500 Index: -0.47% ๐
๐บ๐ธ Nasdaq Index: -1.35% ๐
๐ช๐บ STOXX 600 Index: 0.15% ๐
๐ฏ๐ต Nikkei 225 Index: -1.39% ๐
๐ญ๐ฐ Hang Seng Index: -1.32% ๐
๐จ๐ณ CSI 300 Index: -1.11% ๐
๐ธ๐ฌ Straits Times Index: -0.30% ๐
The U.S. stock market extended its decline, with the S&P 500 and Nasdaq Composite down 0.5% and 1.4%, respectively. Rising tariff threats and intensified scrutiny of major tech earnings fueled persistent risk aversion, pushing the Nasdaq to a one-month low.
Asia-Pacific markets fell, with Hong Kong's Hang Seng Index and China's CSI 300 down 1.3% and 1.1%, respectively. The U.S. expanded restrictions prohibiting American pension and endowment funds from investing in China's high-tech industries, aligning with its "America First" policy.
The FTSE Bursa Malaysia KLCI fell 1.0% to close at 1,568.03, in line with regional markets. Earlier this week, U.S. tariff announcements and capital flows into Chinese equities weakened buying interest, despite strong gains in tech stocks.
Upcoming Events
Thursday: U.S. Durable Goods Orders (MoM), GDP Growth Rate (preliminary, QoQ), and Unemployment Claims. The Eurozone will update its Economic Sentiment Index.
Friday: Japan will release Retail Sales (YoY) and Industrial Production (preliminary MoM), while the U.S. will publish the Core PCE Price Index (MoM), a key inflation indicator for the Federal Reserve.
Key Events Today
1. Trump proposed replacing the EB-5 Immigrant Investor Visa Program with a "Golden Card" that could be purchased for $5 million as a pathway to U.S. citizenship. The plan aims to reform the current system, which grants green cards to foreign investors who create or retain jobs in the U.S.
EB-5 Visa
2. Trip.com $TripAdvisor(TRIP)$
Trip.com
3. Alibaba $Alibaba(09988)$
Qwen 2.5 - Max
4. Super Micro Computer $SUPER MICRO COMPUTER INC(SMCI)$
Supermicro
5. Tesla $Tesla Motors(TSLA)$
Tesla
Key Takeaways
The latest Consumer Confidence Index about consumer resilience and further weighing on U.S. stocks. Investors now see Nvidiaโs earnings report as a potential market catalyst, marking a critical moment to reassess the competitiveness and scalability of AI investments, especially with the rise of DeepSeek.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Market Highlights - 26 February 2025
The U.S. stock market continued its decline on February 26th, with the S&P 500 and the Nasdaq Composite both experiencing losses. The S&P 500 decreased by 0.47%, while the Nasdaq Index saw a larger decline of 1.35%. In the European markets, the STOXX 600 Index rose by 0.15%, while the Asian markets experienced declines, with the Nikkei 225 Index down 1.39% and the Hang Seng Index and CSI 300 Index both down 1.32% and 1.11%, respectively. The Straits Times Index in Singapore also decreased by 0.30%.
The decline in U.S. stocks can be attributed to several factors, including rising tariff threats and intensified scrutiny of major tech earnings. These factors have fueled persistent risk aversion among investors, particularly impacting the Nasdaq Index, which fell to a one-month low.
The U.S. has expanded restrictions that prohibit American pension and endowment funds from investing in China's high-tech industries, aligning with its "America First" policy. This news has contributed to the negative sentiment in the markets.
Furthermore, Tesla, a prominent tech stock, has seen a significant decline in its stock price. It has dropped 20% year-to-date and over 35% from its record closing price on December 16th. Reports suggest that Tesla's upgraded autonomous driving system in China has disappointed users, leading to increased competition from other companies offering similar technology at lower or even free prices.
Looking ahead, investors are closely watching for upcoming events such as the U.S. Durable Goods Orders and the GDP Growth Rate (preliminary).
Key News and Events:
Super Micro Computer Inc. (SMCI) announced its delayed financial results ahead of its Nasdaq listing deadline, leading to a surge of 22% in its after-hours trading. Auditor BDO confirmed compliance with U.S. accounting standards, alleviating delisting concerns.
Nvidia (NVDA) is poised to release its earnings report, which is anticipated to be a potential market catalyst. Investors will reassess the competitiveness and scalability of AI investments, particularly with the rise of DeepSeek.
For more news and information about Nvidia, please check the following articles:
Option Movers | This Palantir Put Soars 990% in One Day; Tesla Sees Bullish Sentiment
Top Calls on Wall Street: Apple, Nvidia, CrowdStrike, Salesforce, Visa, STMicroelectronics, and More
Option Movers | This SMCI Call Soars 263% in One Day; Grab Sees 88% Call Options
Top Calls on Wall Street: Nvidia, Apple, Tesla, Meta, Dell, Snowflake, Moderna, and More
Semiconductor Stocks Shine: Super Micro up 12%, Intel up 9%
13F Tracking | Buffettโs Berkshire Holds On to Apple Shares; Bridgewater Buys Tesla Shares Worth $55 Million
Nvidia: A Buy For Bold Investors Despite DeepSeek's Cost Claims
Please note that the information provided does not constitute investment advice. It is essential to conduct thorough research and analysis before making any investment decisions.
Disclaimer:The information provided here is for reference purposes only and does not constitute professional financial advice. The content is based on the information available at the time of writing and may be subject to change. Investments in the stock market involve risks, including the potential loss of principal amount invested. It is recommended to consult with a qualified financial advisor before making any investment decisions.