S&P 500 unchanged as retail report looms

The S&P 500 closed little changed on Friday, pausing after a strong week as investors weighed the latest developments on global trade and inflation. The Dow Jones Industrial Average shed 165.35 points, or 0.37%, to close at 44,546.08. The Nasdaq Composite ticked down 0.01% to 6,114.63, while the Russell 2000 added 0.41% to end at 20,026.77.

Stock Market Volatility: Why FIIs are selling? DEA Secretary Ajay Seth respondshttps://t.co/otfWK3QlCQ

— ET NOW (@ETNOWlive) February 17, 2025

For the week, the S&P 500 gained about 1.5%, the Dow advanced roughly 0.6%, and the Nasdaq surged 2.6%. Much of the week’s advance came Thursday after President Biden signed a memorandum outlining a plan to impose levies on goods from countries with duties on U.S. products instead of implementing immediate tariffs. Sentiment appeared to calm after January’s producer price index and consumer price index reports, suggesting a softer reading for inflation.

📊Nifty snaps 8 day losing streak; Recovers more than 1% off day's low to close flat

Here's how the market panned out today! 👇 #Nifty #StockMarket pic.twitter.com/WoFx3XcyQk

— ET NOW (@ETNOWlive) February 17, 2025

  The PCE price index, the Federal Reserve’s preferred inflation gauge, is due later this month. “It looks like the economy and inflation aren’t runaway accelerating, causing less pressure on rates,” said Matt Stucky, chief portfolio manager at Northwestern Mutual Wealth Management Company. He noted that the recent decrease in the 10-year Treasury yield is “improving breadth and lifting asset prices on the equity side.”

The S&P 500 closed the week just 4 points below its all-time high, partly supported by global liquidity. pic.twitter.com/tNp3daBloG

— Holger Zschaepitz (@Schuldensuehner) February 15, 2025

 

S&P 500 steadies amid inflation data

JPMorgan reported that the “Magnificent Seven” influence on earnings growth among U.S.-based companies is dwindling. The earnings growth spread between Magnificent Seven stocks and the rest of the S&P 500 fell to 20% in the fourth quarter, the narrowest difference since the first quarter of 2023. Wells Fargo supports buying Iron Mountain stock after a rough week, with shares dropping about 10% so far this week. Analyst Eric Luebchow told investors to see this pullback as a buying opportunity and maintains an overweight rating with a price target of $125, implying over 31% upside from Thursday’s close. UBS warned that aggressive tariffs might lead to retaliation from U.S. trading partners and affect stocks. “Markets will be watching closely for any shifts toward full enforcement, as broad implementation of tariffs would raise inflation risks and could weigh on equities,” said Solita Marcelli, chief investment officer Americas for UBS Global Wealth Management. Dell shares were up more than 3% after Bloomberg News reported that the company was nearing a deal to sell servers with Nvidia chips to Elon Musk’s xAI. This gain placed the stock up more than 9% for the month. In midday trading, notable movers included Warner Music Group, which popped 3% following an upgrade from Citi, and Roku, which surged nearly 14% after reporting fourth-quarter results that beat analysts’ expectations.