Major U.S. stock indexes experienced another decline on February 25, 2025, as shares of Tesla and other large technology companies decreased sharply. Concerns regarding the economic outlook intensified, alongside a significant drop in bitcoin and falling Treasury yields.
S&P 500 and Nasdaq hit hard
The S&P 500 fell by 0.5% while the Nasdaq Composite dropped 1.4%. In contrast, the Dow Jones Industrial Average gained 0.4%, supported by strong performances from Walmart and Home Depot. This marks the fourth consecutive session of declines for the S&P 500 and Nasdaq, while the Dow has risen for two straight days following its worst weekly performance since October the previous week.
Major indexes, which were close to record highs just a week earlier, have faced downward pressure due to investor concerns over economic conditions and uncertainty regarding government policies. The latest consumer confidence data, which revealed weaker-than-expected figures, contributed to negative market sentiment.
S&P 500 gains 0.15% but Wall Street fears a 9.2% post-earnings drop
Tech sector struggles
Technology shares, leading the market decline, were predominantly lower. Tesla (TSLA) saw a drop exceeding 8% after reporting a sharp decline in sales within the European market in January. Nvidia (NVDA), anticipating quarterly results on Wednesday, fell nearly 3%. Microsoft (MSFT), Alphabet (GOOG), Meta Platforms (META), and Broadcom (AVGO) also reported losses. Both Apple (AAPL) and Amazon (AMZN) saw minimal changes in their stock prices.
Super Micro Computer (SMCI) shares plummeted by 12% ahead of a deadline to file delayed financial reports for fiscal 2024 required by Nasdaq. After meeting the filing deadline, the stock rebounded in after-hours trading. Additionally, Palantir (PLTR) shares slid by 3%, continuing a downward trend of more than 25% over the past week due to concerns about potential cuts in Defense Department spending.
Walmart and Home Depot provide some support
Home Depot (HD) shares rose nearly 3%, buoyed by quarterly results that surpassed Wall Street expectations despite a less optimistic outlook. Walmart (WMT) gained over 4%, leading the Dow’s increase.
The earnings calendar was thin on Tuesday but is set to gain momentum in the coming days, highlighted by Nvidia’s anticipated earnings release, along with reports from Lowe’s (LOW), Salesforce (CRM), and Dell Technologies (DELL).
Cryptocurrency market tumbles
In the cryptocurrency sector, companies linked to bitcoin suffered as the price fell below $90,000 for the first time in over a month. Bitcoin was reported at $88,400, marking a drop from $93,000 late Monday and around $100,000 at the end of the prior week. Shares of MicroStrategy (MSTR), one of the largest bitcoin holders, fell 11%, while bitcoin miner MARA Holdings (MARA) also saw an 11% decline; Coinbase Global (COIN) dropped more than 6%.
Gold futures descended by 1.2% to approximately $2,930 an ounce, moving away from record highs reached on Monday. Additionally, West Texas Intermediate crude oil futures fell by over 2% to around $69 per barrel.
Treasury yields decline
The yield on the 10-year Treasury note, an indicator of borrowing costs and expectations of interest rate changes, decreased to 4.30%, down from 4.39% on Monday, reaching its lowest level in more than two months. This decline is associated with growing concerns about the economy.
In other significant market moves, energy company Sempra’s (SRE) shares plunged by 19% due to lower-than-expected fourth-quarter earnings and a reduced 2025 earnings outlook, citing regulatory matters and a higher-cost environment. Tesla continued to decline, losing more than 8%, and Super Micro Computer faced an 11.8% drop during the session before its recovery.
Investors remain focused on Nvidia’s imminent earnings report, while expectations are building for upcoming economic data, including Thursday’s anticipated Q4 GDP report projected to show a 2.3% quarterly increase. Furthermore, Friday’s January PCE price index report is expected to ease slightly to 2.5% year-over-year from December’s 2.6%.
Featured image credit: Parrish Freeman/Unsplash
