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Stock Market News for Feb 25, 2025

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U.S. stocks ended mostly lower on Monday, failing to stage a rebound after swinging between gains and losses for most of the session. Tech stocks were the worst performers, with the Nasdaq and S&P 500 ending in negative territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.1% or 33.19 points, to finish at 43,461.21 points.  

The S&P 500 declined 0.5% or 29.88 points, to end at 5,983.25 points. Tech, consumer discretionary and industrial stocks were the worst performers. 

The Technology Select Sector SPDR (XLK) declined 1.4%, while the Consumer Discretionary Select Sector SPDR (XLY) fell 0.4%. The Industrials Select Sector SPDR (XLI) declined 0.5%. Five of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq fell 1.2% or 237.08 points to close at 19,286.92 points. 

The fear-gauge CBOE Volatility Index (VIX) was up 4.23% to 18.98. Decliners outnumbered advancers on the NYSE by a 1.25-to-1 ratio. On the Nasdaq, a 1.9-to-1 ratio favored declining issues. A total of 15.32 billion shares were traded on Monday, lower than the last 20-session average of 15.34 billion.

Tech Stocks Lead Selloff on Fears of AI Trade Weakness

Stocks showed signs of a recovery in the early trading hours on Monday, following a tumultuous week, but couldn’t hold on to the gains. The steam was soon lost with stocks swinging between gains and losses for most of the trading session. 

Tech stocks led the selloff on Monday, with the Nasdaq entering into negative territory for 2025. Concerns have been growing over the future demand for NVIDIA Corporation’s ((NVDA - Free Report) ) expensive shares. Also, fears of an overall weakness in the artificial intelligence trade have been denting investors’ confidence. 

Shares of NVIDIA ended 3.1% lower on Monday. The AI darling is set to report quarterly results on Wednesday and investors are eagerly waiting for it. Other big tech companies also suffered on Monday. shares of Palantir Technologies Inc. ((PLTR - Free Report) ) tumbled 10.5%, while Intel Corporation ((INTC - Free Report) ) ended 2.4% lower. has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Overall Market Sentiment Low

Fears of an imminent global trade war owing to Trump’s tariffs against major trading partners of the United States continued to dent investors’ sentiment. Trump said that the 25% tariffs on Canada and Mexico will take effect after the monthlong pause. 

Monday’s moves came as a batch of fresh data released last week hinted at a slowing economy. Investors are now waiting for the personal consumption expenditure (PCE) inflation report, which will be released later this week. 

No major economic data was released on Monday.


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