Daily Market Recap – Monday Feb 24, 2025
Stocks Mostly Lower as Tech Drags
US equities were mostly lower on Monday, extending last week’s losses as big tech continued to face pressure. The S&P 500 fell 0.50%, the Nasdaq declined 1.22%, and the Russell 2000 lost 0.72%, while the Dow eked out a slight gain of 0.04%. The session was choppy, with early strength fading as investors remained cautious following Friday’s selloff—the worst day for the S&P 500 this year.
Big tech was mostly lower, with Nvidia (NVDA) as the worst performer, while Meta (META) extended its losing streak to five days after previously rallying for 20 consecutive sessions. Semiconductors, EVs, homebuilders, and China tech were among the biggest laggards, while pharma/biotech, P&C insurers, airlines, REITs, and telecom showed relative strength.
Treasuries were firmer, with the yield curve steepening. The 2-year Treasury auction was well received, providing some relief in the bond market. The US dollar was flat, gold rose 0.3%, and Bitcoin futures declined 0.2%. Meanwhile, WTI crude oil edged up 0.4%, hovering just above $72 per barrel.
Market Sentiment & Macro Developments
The market struggled to sustain gains amid concerns over weaker economic data, government funding uncertainty, and shifting AI investment trends. While tariff discussions remain in focus, Trump reiterated his expectation that tariffs on Mexico and Canada would take effect on March 4. Government shutdown risks are also rising as House Republicans continue to struggle with passing a reconciliation bill for Trump’s tax and spending priorities.
Economic data was mixed — the Dallas Fed Manufacturing Index missed expectations, with rising cost pressures and concerns around trade and immigration policies weighing on sentiment. Meanwhile, a $69B auction of 2-year Treasuries was well received, helping ease bond market jitters.
Looking ahead, investors will watch Tuesday’s Conference Board Consumer Confidence Index, the Case-Shiller Home Price Index, and a $70B auction of 5-year notes. The rest of the week brings Q4 GDP revisions, durable goods orders, jobless claims, and PCE inflation data — all key indicators for the Fed’s policy path.
Corporate Highlights
Berkshire Hathaway (BRK.B) reported a 71% YoY surge in operating income and now holds a record $334B cash pile, reinforcing its strong financial position. Apple (AAPL) announced plans to invest over $500B in the US and hire 20,000 workers over the next four years, signaling aggressive AI and R&D expansion.
Meanwhile, Microsoft (MSFT) was in focus after reports suggested it was canceling some AI-related data center leases — a move TD Cowen attributed to a shift in AI investment strategy and potential oversupply. However, Microsoft reaffirmed its $80B capex target, and analysts believe Oracle (ORCL) and other cloud providers could benefit from OpenAI’s infrastructure reallocation.
Other key corporate developments:
Google (GOOGL) announced a $2.5B cloud partnership with Salesforce (CRM) over seven years.
Uber (UBER) CEO confirmed that Tesla (TSLA) robotaxis will not be available on its platform.
Domino’s Pizza (DPZ) missed earnings, though international sales were a bright spot.
Walgreens (WBA) surged on buyout speculation, as reports suggested banks are helping structure $10B in financing for a potential deal by Sycamore Partners.
Top Gainers & Losers
Notable Gainers:
Bridge Investment Group (BRDG) +33.8% – To be acquired by Apollo (APO) in an all-stock deal worth $1.5B, a 45% premium to Friday’s close.
Freshpet (FRPT) +7.3% – Upgraded to Buy at Jefferies following a sharp YTD selloff; analysts see strong medium-term sales growth and expanding margins.
Nike (NKE) +5.0% – Upgraded to Buy at Jefferies, citing renewed focus on innovation and inventory balance.
Walgreens (WBA) +6.5% – Higher on speculation of a $10B Sycamore Partners buyout deal.
Twilio (TWLO) +3.1% – Upgraded to Overweight at Morgan Stanley, with analysts citing margin improvements from AI efficiencies.
Notable Decliners:
Lucid Group (LCID) -9.2% – Downgraded to Sell at Redburn Atlantic, with concerns over capital needs and execution risks.
Rivian (RIVN) -7.9% – Downgraded to Neutral at Bank of America, citing weaker-than-expected 2025 outlook and increasing EV competition.
Domino’s Pizza (DPZ) -1.5% – Missed Q4 EPS and revenue expectations, though international comps were strong.
Fresh Del Monte (FDP) -3.0% – Q4 revenue missed, with the company flagging lower banana prices and weaker sales trends.
Here’s Our Take
Markets remain choppy as growth concerns, tariff uncertainty, and shifting AI investment trends weigh on sentiment. While defensive sectors like healthcare, telecom, and consumer staples showed resilience, big tech and semis continue to see pressure after a strong run-up.
With major economic data due later this week - including PCE inflation on Friday - investors will be closely watching for signals on the Fed’s rate path. Meanwhile, Nvidia (NVDA) earnings on Wednesday will be a key event, given its AI leadership and recent stock volatility.
Bottom line: Markets remain in wait-and-see mode, balancing strong corporate earnings against weaker growth signals and policy uncertainty. While long-term AI and innovation trends remain intact, near-term volatility is likely to persist.