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US stocks lost ground Friday following a key inflation reading that largely met expectations and as fresh tariff threats added to uncertainty over Big Tech prospects.
The S&P 500 (^GSPC) shed 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) was down about 0.3% after suffering a Nvidia-led (NVDA) sell-off on Thursday. The Dow Jones Industrial Average (^DJI) slipped just below the flatline. All the major averages backtracked in the afternoon session, giving up earlier gains.
The Nasdaq was poised to register its worst week since 2023, highlighting the sudden downward shift.
Markets are wrapping up February trading facing sharp weekly and monthly losses after suffering the buffets of tariff moves. The Nasdaq is on track to fall over 5% in February, while the S&P 500 and Dow are eyeing drops of around 3%. Meanwhile, the benchmark S&P has seen daily drops of over 1% on three trading days this week.
SNP – Free Realtime Quote USD
As of 1:23:18 PM EST. Market Open.
^GSPC ^IXIC ^DJI
The January reading of Personal Consumption Expenditures index did its part to soothe some anxiety after recent data revived concerns about a slowdown in the economy and an uptick in inflation. Annual “core” PCE — which strips out food and energy prices and is the Federal Reserve’s preferred gauge of inflation — cooled to 2.6%, matching expectations.
But consumer spending fell 0.2% last month, the data showed. That undershot economist forecasts of a 0.1% rise and compared with a gain of 0.8% in December.
Meanwhile, investors reeling from President Trump’s fast-paced trade policy overhaul had to grapple with fresh tensions after China vowed to respond with “all necessary measures.” Beijing’s threat came after Trump said an extra 10% tariff on Chinese imports would take hold on Tuesday. He has also pledged to follow through on new duties on Mexico and Canada, and to impose tariffs on the EU.
Also, the sell-off in bitcoin (BTC-USD) deepened as the token sank 7% to its lowest level since November. The cryptocurrency has dropped 25% from its record high amid a broader crypto rout.
LIVE 17 updates
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Stocks trending in afternoon trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday:
Palantir (PLTR): The data analytics company dropped 3% Friday, continuing a losing streak that has eaten into nearly one-third of its share price since its record high earlier this month. Retail investors who have flocked to the stock and boosted the ticker to the top of the charts have pulled back, risking a continued unwinding. The downward trend comes as the Trump administration moves to cut defense spending, a major source of Palantir’s income.
Rocket Lab (RKLB): Shares of the aerospace manufacturer fell 0.6% Friday afternoon following a issuing a disappointing first quarter revenue forecast and the delay of the launch of its Neutron rocket to the second half of the year.
Strategy (MSTR): The largest corporate holder of bitcoin (formerly known as MicroStrategy) bounced back in morning trading after getting knocked down this week in a broad crypto rout. Shares rose about 5%. Bitcoin (BTC-USD), the most dominant cryptocurrency, has shed roughly 12% this week. Macroeconomic uncertainty around tariffs and inflation and a $1.5 billion crypto exchange hack contributed to the pullback among investors.
Autodesk (ADSK): The software company beat expectations on the top and bottom lines but investors still pulled back, even as the company announced plans to focus on profitability, including a cut of more than 1300 jobs. The restructuring plan would impact about 9% of the company’s workforce.
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Stocks rise as Wall Street looks to wrap a month of woes
Wall Street is looking to put a rough month of trading to rest as the afternoon session is poised to end with some positive momentum, even as the major averages are set to record a losing month.
The S&P 500 (^GSPC) climbed 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) rose about 0.7% after suffering a Nvidia-led (NVDA) sell-off on Thursday. The Dow Jones Industrial Average (^DJI) added 0.6%.
SNP – Free Realtime Quote USD
As of 1:23:18 PM EST. Market Open.
^GSPC ^IXIC ^DJI
The uptick Friday followed a key inflation reading that largely met expectations, providing some relief to investors. But Trump’s renewed tariff threats have added to global economic uncertainty.
Trump said an extra 10% tariff on Chinese imports would take hold next week. And he said he would follow through on new duties on Mexico and Canada and would impose tariffs on the EU.
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Consumers slash spending in latest warning sign of tariff unease
A fresh reading showing a drop in consumer spending added to a wave of concerning data suggesting that Americans are anxious about coming tariffs and the potential price hikes that could follow.
American consumers cut their spending by 0.2% in January, compared to the prior month, according to data published by the Commerce Department Friday.
While the data also showed that inflation cooled, the president’s plans to impose tariffs on Mexico and China next week could push prices higher, economists and business leaders say.
“Softer consumer spending and slower income growth should catch the Fed’s attention,” said Jeffrey Roach, Chief Economist for LPL Financial. “Despite the deceleration in the annual pace of inflation, the monthly rate is still running hotter than the Fed would like.”
The spending data follows two recent consumer sentiment surveys that highlighted a souring outlook among Americans.
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Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday:
Dell (DELL): Shares of the technology company fell 6% Friday morning following a mixed revenue outlook for the current quarter. Dell reported quarterly results Thursday with sales that missed analysts’ estimates but logged earnings that beat Wall Street expectations.
Palantir (PLTR): The data analytics company dropped 1% Friday, continuing a losing streak that has eaten into nearly one-third of its share price since its record high earlier this month. Retail investors who have flocked to the stock and boosted the ticker to the top of the charts have pulled back, risking a continued unwinding. The downward trend comes as the Trump administration moves to cut defense spending, a major source of Palantir’s income.
HP (HP): The legacy IT company fell 6% Friday as it expects President Trump’s tariff policies around China to weigh on the profit outlook for the second quarter and full-year 2025. As the computer company reported earnings on Thursday, it also said up to 2,000 more employees would be laid off as part of a cost-savings plan.
Strategy (MSTR): The largest corporate holder of bitcoin (formerly known as MicroStrategy) bounced back in morning trading after getting knocked down this week in a broad crypto rout. Shares rose about 5%. Bitcoin (BTC-USD), the most dominant cryptocurrency, has shed roughly 12% this week. Macroeconomic uncertainty around tariffs and inflation and a $1.5 billion crypto exchange hack contributed to the pullback among investors.
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Redfin stock tumbles as report shows housing woes persist in 2025
Redfin stock (RDFN) tumbled 13% on Friday after the online real estate company reported fourth quarter earnings that fell short of Wall Street’s expectations and provided a discouraging outlook.
The company posted a net loss of $0.29 for each share of common stock, worse than the $0.23 loss per share analysts expected. The revenue guidance for the next quarter, in a range of $214 million to $225 million, also didn’t impress, coming below analysts’ estimates of $244.4 million.
This is a mixed report, and the outlook “was below on revenue and especially so on EBITDA,” which “is critical as Redfin has been keenly focused on reaching profitability since 2023 and not yet consistently reached,” Citi’s Ygal Arounian wrote in a note to clients after the company’s earnings.
CEO Glenn Kelman remains optimistic despite ongoing housing challenges, expecting higher profits from the rental partnership with Zillow.
“One reason Redfin is focused on gaining market shares [is that] home sales are unlikely to significantly recover in 2025,” Kelman told analysts and investors on Thursday’s earnings call.
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It’s a bleak February for stocks and other assets
Stocks are pretty upbeat as they kick off the last trading day of February, with the major gauges — even the Nasdaq — all holding nicely in the green.
But weeks of President Trump’s tariff battering ram and confidence-cracking economic data have taken a toll. All sorts of assets look bruised when it comes to monthly performance.
SNP – Free Realtime Quote USD
As of 1:23:18 PM EST. Market Open.
^GSPC ^IXIC ^DJI
Here is where those markets are historically headed in the early going:
On the plus side, Consumer Staples stocks look to be the biggest February winner in sectors.
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Egg shortages will ease up later this year, Vital Farms says
Organic egg giant Vital Farms (VITL) told investors on Thursday that the bird flu ripping through US farms right now will keep pressure on supply to start the year, but that shortages should ease later in 2025.
“Industry supply will remain under pressure to start the year due to the impact of HPAI on poultry flocks across the United States,” Vital Farms CEO Russell Diez-Canseco said in a release.
“We have experienced supply constraints to start the year. However, as the year progresses, we believe the supply chain investments we made in 2024 and into 2025 will begin bearing fruit.”
In its fourth quarter ended Dec. 29, the company reported revenue rose 22.2% to $166 million. For the full-year, revenues tallied $606 million. The company expects full-year 2025 revenues to be “at least” $740 million.
Shares were up as much as 5% early Friday. The stock has lost about 13% so far this year but is up close to 90% over the last 12 months.
Egg shortages and a surge in egg prices have been one of the biggest economic stories for consumers to start 2025. In January, the average price of a dozen eggs in the US hit a record $4.95, up 15.2% over the prior month and 53% from the same month last year.
And as politicians, economists, and investors learned vividly during the post-pandemic inflation boom, consumers dislike many things about inflation, but nothing stings quite like spiking grocery prices.
Especially for a household staple like eggs.
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PCE inflation gauge matches expectations, offering relief to Fed
The Fed’s preferred inflation gauge met estimates Friday with a reading that showed prices rose in January but cooled on an annual basis.
The core Personal Consumption Expenditures (PCE) index, which strips out food and energy costs, rose 0.3% in January, Yahoo Finance’s Jennifer Schonberger reports.
On an annual basis, core prices rose 2.6%, which was in line with expectations and down from the 2.9% year-over-year increase in December.
The PCE data should keep interest rates on hold when the central bank holds its next meeting on March 18-19. Friday’s reading is expected to offer Fed officials solace after the January CPI data caused many policymakers to question whether the hotter-than-expected reading was a blip or a new trend.
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Stocks open to mixed results as inflation reading comes in as expected
An inflation reading that served to calm anxieties over pricing pressures did little to boost US stocks Friday, as the print met expectations but arrived amid fresh tariff threats, which added to uncertainty over Big Tech prospects.
The S&P 500 (^GSPC) rose just over the flat line, while the tech-heavy Nasdaq Composite (^IXIC) was up about 0.5% after suffering an Nvidia-led (NVDA) sell-off on Thursday. The Dow Jones Industrial Average (^DJI) added 0.2%.
The January reading of Personal Consumption Expenditures index did its part to soothe some anxiety after recent data revived concerns about a slowdown in the economy and an uptick in inflation. Annual “core” PCE — which strips out food and energy prices and is the Federal Reserve’s preferred gauge of inflation — cooled to 2.6%, matching expectations.
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Falling rates are not helping the stock market
The benchmark 10-year Treasury yield (^TNX) fell to a 2025 low this week, which, in theory, should have boosted the stock market, as bond returns appear less attractive and lower borrowing rates often lift earnings.
Instead, the market has stalled, with the S&P 500 (^GSPC) returning a meager 0.3% gain year to date.
Yahoo Finance’s Allie Canal explains:
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Palantir’s stock plunge sends its biggest fans to the exits
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Why Tesla’s stock has given up nearly all of its Trump election gains
Tesla (TSLA) shares have tumbled 30% this year and have wiped out nearly all of their post-Trump election gains. The stock is trading steady in premarket, following its 3% drop in Thursday’s tech sell-off.
Several factors are helping drive the retreat. Yahoo Finance’s Pras Subramanian reports:
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PCE inflation data on deck
A fresh look at a key inflation measure will come with the January PCE release, expected at 8:30 a.m. ET on Friday.
Yahoo Finance’s Josh Schafer reports:
Read more here.
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Good morning. Here’s what’s happening today.
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Bitcoin falls below $80,000 for first time since Nov. 11
Bitcoin slid from an all-time high six weeks ago to the cryptocurrency’s lowest trading point in months. Insecurity around President Donald Trump’s tariff plans has pulled faith in the asset down alongside the world’s largest cryptocurrency hack, which caused investors to seek safe-haven commodities.
Read more here.
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Trending tickers from after-hours trading Thursday.
Duolingo (DUOL)
Duolingo Inc., a language learning platform, reported fourth quarter results that surpassed analyst expectations. However, stock in the company dropped 8% in after-hours trading.
Rocket Lab (RKLB)
Aerospace and defense company Rocket Lab stocks cratered 13% on soft guidance despite the company announcing better-than-expected revenue for the quarter.
SoundhoundAI (SOUN)
SoundHound AI, specializing in voice artificial intelligence products, surpassed Wall Street’s fourth-= quarter expectations late Thursday and raised its forecast for the full year of 2025. Soundcloud AI stock soared 9% in after-hours trading.
