The S&P 500 was little changed on Friday. It paused after a strong performance this week. Investors weighed the latest developments in global trade and inflation.
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The Dow Jones Industrial Average fell 165.35 points, or 0.37%. It closed at 44,546.08. The Nasdaq Composite edged down 0.01% to 6,114.63.
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The Russell 2000 added 0.41% to close at 20,026.77. Despite the mixed daily results, the three major averages ended the week in the green. The S&P 500 added about 1.5%.
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
The Dow advanced roughly 0.6%. The Nasdaq was 2.6% higher. A significant portion of the week’s gains came on Thursday.
US stocks have outperformed International stocks for over 16 years, by far the longest run of outperformance in history.
So far this year, we're seeing the opposite, with International stocks up 5.8% vs. a 2.9% gain for the S&P 500.
Video: https://t.co/50JQayskti pic.twitter.com/ooLm4m12fM
— Charlie Bilello (@charliebilello) February 13, 2025
President Trump signed a memorandum. It laid out a plan to impose targeted levies rather than immediate tariffs on goods from countries with duties on U.S. products. This move seemed to provide more certainty around trade policy.
Trade policy had been a primary concern for investors. Sentiment improved further after the release of January’s producer price index (PPI) and consumer price index (CPI) reports. They suggested softer-than-expected inflation.
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 added that the recent decline in the 10-year Treasury yield is “improving breadth” and lifting asset prices on the equity side.
Yields continued to slide on Friday. The 10-year Treasury yield dropped nearly 5 basis points to 4.478%.
Market sentiment mixed amid economic indicators
The influence of the “Magnificent Seven” stocks on overall U.S. earnings growth is dwindling, according to JPMorgan. The firm noted that the earnings growth spread between these stocks and the rest of the S&P 500 fell to 20% in the fourth quarter. It was the narrowest difference since early 2023.
“While still a meaningful driver of U.S. earnings growth, the contribution of the Mag-7 is diminishing,” JPMorgan analyst Mislav Matejka stated. Shares of Iron Mountain dropped about 10% this week. It marked its worst performance since 2022.
The company posted slightly weaker-than-expected revenue for the fourth quarter. It faced criticism from Elon Musk regarding government inefficiency. However, Wells Fargo analyst Eric Luebchow recommended the pullback as a buying opportunity.
He maintained an overweight rating on the stock, with a price target of $125. This implies over 31% upside. Although investors were relieved by Thursday’s tariff announcements, UBS warns that aggressive tariff enforcement could lead to retaliatory measures from U.S. trading partners.
It could affect stocks and boost inflation. “Markets will be watching closely for any shifts toward full enforcement,” said Solita Marcelli, chief investment officer Americas for UBS Global Wealth Management. Shares of Dell Technologies rose more than 3%.
Bloomberg News reported that the company was nearing a deal to sell servers equipped with Nvidia chips to Elon Musk’s xAI. This gain pushed Dell’s stock up more than 9% for the month. Warner Music Group surged 3% following an upgrade from neutral by Citi analyst Jason Bazinet.
He noted that Warner Music’s valuation was “far below” those of its peers. Meanwhile, Roku jumped nearly 14% after reporting fourth-quarter results that surpassed analysts’ expectations. The streaming company reported a loss of 24 cents per share on revenue of $1.2 billion.
It beat the expected loss of 40 cents per share on revenue of $1.14 billion. These developments underscore the mixed but overall positive sentiment in the stock market. Investors navigate economic indicators and corporate earnings.
