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Stock Market News for Feb 26, 2025

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U.S. stock ended mostly lower on Tuesday, with the S&P 500 and Nasdaq recording their fourth straight session of losses following a disappointing consumer confidence reading and President Donald Trump’s claim that the 25% tariffs on Canada and Mexico will go into effect next month.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) gained 0.4% or 159.95 points, to close at 43,621.16 points.  This was the blue-chip index’s best day since Feb. 13.

The S&P 500 fell 0.5% or 28 points, to finish at 5,955.25 points, its largest four-day percentage decline since Sept.6. Tech, communication services and energy stocks were the worst performers. 

The Technology Select Sector SPDR (XLK) declined 1.3%, while the Communication Services Select Sector SPDR (XLC) fell 1.5%. The Energy Select Sector SPDR (XLE) declined 1.4%. Six of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq slid 1.4% or 260.54 points to end at 19,026.29 points. 

The fear-gauge CBOE Volatility Index (VIX) was up 2.39% to 19.43. Advancers outnumbered decliners on the NYSE by a 1.2-to-1 ratio. On the Nasdaq, a 1.58-to-1 ratio favored declining issues. A total of 16.32 billion shares were traded on Tuesday, higher than the last 20-session average of 15.32 billion.

Stocks Retreat after Disappointing Consumer Confidence Data

Stocks suffered further on Tuesday following the release of a weaker-than-expected consumer confidence reading. The Conference Board’s consumer survey index dropped to 98.3 in February, sharply below the consensus estimate of 102.3, and the lowest level since August 2021. 

This was the third straight month that consumer confidence has dropped. The weak consumer confidence reading follows a series of disappointing economic data released over the past week, raising concerns over the economy’s health. 

Tech stocks took a major hit on Tuesday as investors shifted to safer assets. Shares of NVIDIA Corporation ((NVDA - Free Report) ) fell 2.8%, while Palantir Technologies Inc. ((PLTR - Free Report) ) lost 3.1%. Tesla, Inc.’s ((TSLA - Free Report) ) shares declined 8.4%. Palantir Technologies has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Investors also moved toward the bond market for safety. Treasury yields fell on Tuesday. The 10-year Treasury yield fell below 4.3%, its lowest level since December. 

Shares of major banks also took a hit on Tuesday on growing recession fears. Shares of JPMorgan Chase & Co. ((JPM - Free Report) ) and The Goldman Sachs Group, Inc. ((GS - Free Report) ) decline d1.5% and 1.8%, respectively. 

Trump’s Tariffs Raise Trade War Fears 

Investors are also concerned about Trump’s proposed tariffs on a wide range of goods. Trump said that the 25% tariffs on Canadian and Mexican imports that have been kept on hold, will go into effect from next month. 

Investors are now looking forward to the personal consumption expenditure (PCE) inflation report, which will be released later this week.

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