U.S. stock markets experienced a challenging session on Monday, February 24, 2025, with major indexes extending their recent downturn. The technology sector bore the brunt of the selling pressure, contributing significantly to broader market weakness as investors grappled with persistent concerns about the economic outlook and potential shifts in White House policy.
Market Indexes Register Losses Amid Economic Uncertainty
The S&P 500, a broad gauge of U.S. large-cap stocks, shed 0.5% by the close, marking its fourth consecutive session of losses. The tech-heavy Nasdaq Composite saw a more significant decline, falling 1.4% and also extending its slump to four straight sessions. These movements reflect a cautious sentiment pervading the market, amplified by recent economic data.
In contrast, the Dow Jones Industrial Average managed to eke out a gain, rising 0.4%. This advance was primarily supported by positive performance in shares of retail giants Walmart and home improvement retailer Home Depot, which helped offset weakness elsewhere.
Underlying the cautious mood were factors including weaker-than-expected consumer confidence data released prior to Monday’s trading. This data, coupled with ongoing uncertainty surrounding the future direction of economic policy from the White House, weighed on investor sentiment and contributed to the negative trajectory observed in the S&P 500 and Nasdaq.
Tech Sector Leads Broad Sell-Off
Shares of major technology companies were broadly lower on Monday. Electric vehicle manufacturer Tesla (TSLA) saw a notable drop, falling over 8%. The decline followed news indicating a sharp decrease in E.U. sales last month, raising concerns about demand in a key international market.
Graphics chip giant Nvidia (NVDA) also experienced a slide, dipping nearly 3%. The move came as investors looked ahead to the company’s highly anticipated quarterly results, with some potentially taking profits or adjusting positions ahead of the announcement.
Other prominent tech players also registered losses. Microsoft (MSFT), Alphabet (GOOG), Meta Platforms (META), and Broadcom (AVGO) all finished the day lower. Apple (AAPL) and Amazon (AMZN), however, managed to finish the session near unchanged levels, showing relative resilience compared to some of their peers.
Super Micro Computer (SMCI) shares experienced a substantial plunge, dropping 12%. The sharp decline occurred as a deadline loomed for the company to file delayed 2024 financial reports required by Nasdaq listing rules, sparking concerns among investors.
Palantir Slides Amid Defense Spending Fears
Analytics software company Palantir Technologies (PLTR) continued its recent decline, with shares sliding another 3% on Monday. This adds to a challenging period for the stock, which has now lost more than a quarter of its value in the past week.
The sell-off in Palantir comes amid growing concerns about potential reductions in U.S. Defense Department spending, a significant source of revenue for the company. A report last week indicated that Defense Secretary Pete Hegseth reportedly ordered Pentagon officials to cut the U.S. defense budget by 8% annually for the next five years, fueling anxiety about the future of defense contracts.
Palantir CEO Alex Karp spoke at an Economic Club of New York event on Monday, February 24, 2025, though the specific content of his remarks and their potential market impact were not immediately clear.
Notable Movers and Upcoming Earnings
While tech stocks faced pressure, some individual names saw gains. Nike (NKE) rose almost 5% after analysts at Jefferies issued a buy recommendation for the athletic apparel and footwear giant.
Berkshire Hathaway (BRK.A; BRK.B), the conglomerate led by Warren Buffett, saw its shares jump over 4%. The move followed the company’s report of a robust 70% increase in fourth-quarter operating earnings, signaling strong underlying business performance.
The corporate earnings calendar for the week remains active, with reports anticipated from several key companies. These include Home Depot (HD), Lowe’s (LOW), Salesforce (CRM), and Dell Technologies (DELL). Shares of Dell Technologies fell nearly 3% on Monday ahead of its report.
Bond and Commodity Markets
In the bond market, the yield on the benchmark 10-year Treasury note edged lower. It stood at 4.40% in late trading on Monday, down from 4.42% at the end of the previous week. This yield is now trading near its lowest level of the month, influenced by weaker-than-expected data on home sales and consumer confidence that were released on Friday.
Looking ahead, investors are closely awaiting a key inflation indicator due Friday. The data is expected to provide further insight into the state of the economy and could potentially influence the Federal Reserve’s decisions regarding future interest rate policy.
Commodity markets saw modest gains. Gold futures were up 0.5% late Monday, trading at around $2,970 an ounce and near a record high, reflecting its status as a safe-haven asset amidst market volatility. West Texas Intermediate (WTI) crude oil futures also rose, gaining 0.7% to trade at $70.90 per barrel.
In the cryptocurrency market, Bitcoin traded around $92,400 recently, pulling back from an intraday high of $96,500 earlier in the session.
