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US stocks pointed mostly lower 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) wavered around the flatline, while the tech-heavy Nasdaq Composite (^IXIC) was down about 0.4% after suffering a Nvidia-led (NVDA) sell-off on Thursday. The Dow Jones Industrial Average (^DJI) added 0.2%.
Markets are heading into the last trading day of February facing sharp weekly and monthly losses after suffering the buffets of tariff moves. The Nasdaq Composite (^IXIC) is on track to fall over 5% in February, while the S&P 500 (^GSPC) and Dow (^DJI) 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 10:23:53 AM 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 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 for a rise of 0.1% 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 11 updates
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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.
