S&P 500 ticks higher after in-line inflation data, benchmark is headed for worst week of 2025: Live updates
The S&P 500
rose Friday after the latest personal consumption expenditures price index came in-line with expectations, as Wall Street wrapped up a losing week and month.
The broad market index added 0.5%, while the Nasdaq Composite
rose 0.6%. The Dow Jones Industrial Average
gained 258 points, or 0.6%.
Month to date, the Nasdaq has led the way down, sliding around 4.9% in February due largely to a 4.3% drop this week. The technology-heavy Nasdaq is on pace for its worst month since September 2023.
The S&P 500 has declined 2% for the week and around 2.5% in February. The broad market index is on track for its worst week since September 2024 and biggest monthly decline since April 2024. The Dow
has managed to eke out a gain of 0.1% this week. Month to date, however, the 30-stock index has ticked down 2.4%.
The latest PCE reading showed that inflation eased slightly in January, according to a report from the Commerce Report. The PCE price index, which is the Federal Reserve’s preferred inflation measure, increased 0.3% for the month and 2.5% on an annual basis.
Core PCE, which excludes volatile food and energy prices, also rose 0.3% for the month and 2.6% year over year. The numbers all came in as expected with Dow Jones consensus estimates.
“This release most likely keeps the Fed in a pause mode for the near term. We still believe that we need to see softer inflation data or weaker unemployment data for the Fed to start cutting again,” said John Lloyd, portfolio manager at Janus Henderson. “The path for policy rates over the next year is certainly more difficult to forecast as the economy and markets will be impacted by governmental policy decisions in the US and around the world.”
Investors have been rattled in recent days by President Donald Trump’s promise of tariffs and recent economic reports flashing warning signs. A decline of 8.5% in megacap tech titan Nvidia
in Thursday’s session the back of earnings threw more cold water on investor sentiment.
“February is seasonally a volatile period of time for stocks, and that historical trend is playing out right now,” said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management. “Investors are in search of more clarity on tariffs, elevated inflation and the state of the consumer.”
The VanEck Semiconductor ETF (SMH)
, which tracks 25 of the biggest chipmakers in the country, is raking in losses as the chips trade continues to suffer after Nvidia
’s latest earnings report.
SMH is down 8.6% this week, putting the semiconductor index on track for its worst week since Sept. 6, when SMH fell 11.69%. The index is down about 6.2% this month, putting it on pace for the worst month since Sept. 2023 when it fell 7.19%. The index hasn’t had a negative year since 2022.
Dragging SMH this month are losses in companies such as Nvidia, Skyworks Solutions
, Marvell Technology
, Cadence Design
and Advanced Micro Devices
.
— Pia Singh
Logitech International
’s growth prospects are dimming and investors should look elsewhere, according to Bank of America.
Analyst Didier Scemama downgraded the computer products company to underperform from neutral, lowering growth projections for several product segments. The firm now projects overall revenue will grow just 3.1% in the 2026 fiscal year, down from an estimated 6.7% growth rate in the current year.
“While we raise our FY25-27E revenue growth assumptions for the margin-rich Video Collaboration division (reflective of stronger Enterprise spending and a solid product pipeline), we are somewhat more cautious on PC, Tablet and Gaming Peripherals, for which we have cut our estimates across the board,” Scemama wrote.
The prospect of higher tariffs on Logitech’s products could also weigh on growth, Scemama added.
Logitech makes computer accessories such as mice, keyboards and webcams. Shares of the company fell more than 4% Friday.
— Jesse Pound
The S&P 500 kicked off Friday’s trading session near the flatline.
The broad market index inched down 0.1%. Meanwhile, the Dow Jones Industrial Average added 100 points, or 0.2%. The Nasdaq Composite lagged, falling around 0.7%.
— Hakyung Kim
A weeklong rout in bitcoin
worsened Friday, with the cryptocurrency falling as low as $78,226.23 overnight, another three-month low.
The blue-chip coin is down more than 14% for the week and on pace for its worst week since November 2022, which was around the time of the FTX collapse. It is also heading for its worst month since June 2022.
Exchange-traded funds that track bitcoin are heading for a record week of outflows, which stand at $2.7 billion as of Thursday’s market close.
For more on bitcoin’s bad month, read our full story here.
— Tanaya Macheel
Some stocks are making big moves in premarket trading Friday:
Read here for the full list.
— Sean Conlon
On Thursday, a Labor Department report revealed that jobless claims for the week ended Feb. 22 reached 242,000. This was up 22,000 from the previous week’s revised level and exceeding the Dow Jones Estimate for 225,000.
This also matched the highest level since early October. Although some may have attributed this higher reading to federal employee job cuts under Elon Musk’s Department of Government Efficiency, JPMorgan told clients in a recent note that it doesn’t believe this to the case.
“While it’s possible that weather and seasonal noise contributed to the spike, the sharp move higher is somewhat concerning for the jobs picture,” economist Bennett Parrish said. “We do not think the latest increase was driven by job losses among government contractors and layoffs among federal employees are not captured by the headline figures.”
— Lisa Kailai Han
China on Friday opposed President Donald Trump’s latest tariff threat, with its Ministry of Commerce saying: “If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests.”
“We urge the U.S. side to not repeat its own mistakes, and to return as soon as possible to the right track of properly resolving conflicts through dialogue on equal footing,” a ministry spokesperson said, according to a CNBC translation.
— Anniek Bao, Evelyn Cheng
The Securities and Exchange Commission issued long sought after guidance Thursday evening saying it does not deem most meme coins securities under U.S. federal law; that they have “limited or no use or functionality” and are “more akin to collectibles.”
“A meme coin does not constitute any of the common financial instruments specifically enumerated in the definition of ‘security’ because, among other things, it does not generate a yield or convey rights to future income, profits, or assets of a business,” the statement said. “In other words, a meme coin is not itself a security.”
Dogecoin
, the original meme coin and sixth largest cryptocurrency by market cap, rose 3%. The token tied to Solana
, which has become the go-to host for meme coins – including the Official Trump meme coin – rose 2%.
Coinbase and Robinhood were up 1% each in after hours trading.
For more, read our full story here.
— Tanaya Macheel
The Nasdaq-100
index has fallen 7.33% since reaching an all-time high of 22,175.6 six days ago on Wednesday Feb. 19, the fastest decline of 5% or more since Septemner 2020, according to Bespoke Investment Group.
The Nasdaq-100 is made up of the 100 largest companies, adjusted for modified market capitalization, that trade on Nasdaq in the materials, consumer discretionary, consumer staples, healthcare, industrials, technology, telecommunications, and utilities industries.
— Scott Schnipper
With just Friday’s session left in the trading week and month, the major major indexes are on track for losses. Here’s where they stand:
— Alex Harring
These are some of the stocks making the biggest moves in extended trading:
Click here for the full list.
— Alex Harring
Dow futures
ticked higher by 0.1% shortly after 6 p.m. ET. S&P 500
and Nasdaq 100
futures each added 0.2%.
— Alex Harring
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The VanEck Semiconductor ETF on track for its worst month since Sept. 2023
Bank of America downgrades Logitech International, warns of potential tariff effects
S&P 500 opens little changed Friday
Bitcoin heads for its worst week since 2022 FTX collapse
Nvidia, Alibaba among the names making moves premarket
Thursday’s jump in weekly jobless claims is ‘somewhat concerning’ for the overall labor market, JPMorgan says
China vows retaliation against additional U.S. tariffs
SEC says most meme coins are not securities
Nasdaq-100 just suffered fastest 5% decline from an all-time high since Sept. 2020, Bespoke says
Stocks head for losing week and month
See the stocks moving after hours
Futures edge higher
News Tips
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| Index | Week-to-date performance | Month-to-date performance |
| Dow | -0.4% | -2.9% |
| S&P 500 | -2.5% | -3% |
| Nasdaq Composite | -5% | -5.5% |
Stock market breathes a quick sigh of relief over inflation data
U.S. stocks mostly edged higher at the open as investors expressed relief that the latest inflation report matched economists’ expectations.
The personal consumption expenditures prices paid index, which is the Federal Reserve’s preferred inflation measure, increased 0.3% for the month and 2.5% on an annual basis in January. So-called core PCE, which excludes volatile food and energy prices, also rose 0.3% for the month and 2.6% year over year. The numbers all came in as expected with Dow Jones consensus estimates.
This was a huge relief after January’s hotter-than-expected consumer price index. January’s CPI hit a seven-month high, fanning worries that prices were reversing course before reaching the Federal Reserve’s 2% goal.
Around 9:53 a.m. ET, the broad S&P 500 index edged up 0.13%, or 7.73 points, to 5,869.30; the blue-chip Dow rose 0.30%, or 128.03 points, to 43,367.53; and the tech-heavy Nasdaq dipped 0.16%, or 29.47 points, to 18,514.95. The benchmark 10-year Treasury yield eased to 4.239%.
Still, all three major stock indexes were on track for a losing month as investors worry that President Donald Trump’s tariff plans will spark trade wars that will hurt the economy and reignite inflation. China vowed retaliation after Trump slapped another 10% tariff on Chinese goods, effective March 4. On that same day next week, he said the U.S. would impose a 25% tax on European Union products.
Need a break? Play the USA TODAY Daily Crossword Puzzle.
Month to date, the Nasdaq has shed around 6% in February due largely to a 5% drop this week. The index is on pace for its worst month since September 2023. The S&P 500 is on track for its worst week since September 2024 and its biggest monthly decline since April 2024.
The Securities and Exchange Commission issued guidance Thursday evening saying it does not deem most meme coins securities under U.S. federal law. Instead, it likened the meme coins to collectibles.
The guidance paves the way for both exchange operators to list more meme coins without the risk of regulatory enforcement, experts said. Trump has his own meme coin.
Separately, the SEC dropped a lawsuit against Coinbase that sought to regulate the company as a stock exchange.
These are all in line with views the Trump administration would be light handed in regulating the crypto market.
Yet, the crypto sector can’t shake off its downtrend. Bitcoin dropped to a three-month low, reversing gains made just after Trump’s presidential win. The digital currency was last down 2.95% at $82,499.77.
Crypto exchange Coinbase fell almost 1% and Robinhood lost 1.24%.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Corporate news
Cryptocurrency
US stocks inched higher 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) climbed 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) was up about 0.6% 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.
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.
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.
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.
Read more here.
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.
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:
The reason may have to do with concerns over economic growth, according to Wall Street watchers.
Rates have declined as investors worry that President Donald Trump’s tariff plans will hurt economic expansion and the labor market, potentially prompting the Federal Reserve to lower the cost of borrowing even as inflation remains elevated.
Recent data has highlighted growth concerns, marking the return of “bad news for the economy is bad news for stocks.” Consumer confidence plummeted in February, notching its biggest monthly decline in nearly four years as 12-month inflation expectations jumped and recession fears escalated.
Read more here.
Yahoo Finance’s Brian Sozzi writes:
With Palantir’s stock (PLTR) tanking, its biggest fans — retail investors — are taking a pause.
Retail investor purchases of Palantir’s stock have fallen off a cliff since early February, according to new data from Vanda Research. The peak in retail purchases of Palantir came in mid-January as momentum traders rode one of their favorite stocks.
Palantir shares hit a record high on Feb. 18 and have since plunged 32%.
Read more about why Palantir stock has sold off here.
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:
Having the ear of the administration, of course, has been seen as a positive thing for Tesla — largely because it will be easier to overcome the regulatory hurdles the company faces with getting its self-driving and autonomous technology approved for wider use.
But after Tesla stock hit that closing high on Dec. 17, the stock has tumbled 40%.
Among the reasons: The company’s fourth quarter earnings and deliveries were lackluster, and full-year deliveries fell for the first time in the company’s history. Earlier in January, one of Tesla’s autonomous features was probed by NHTSA, adding to other ongoing investigations into self-driving; the polarizing Cybertruck was discounted and facing likely demand issues; and most recently, the company saw European sales tumble in January.
One big culprit is CEO Elon Musk’s behavior. His political activity, both in the US with DOGE’s controversial moves and abroad, where Musk’s embrace of far-right political movements, is likely alienating wide swaths of the public, current customers, and potential Tesla buyers.
Read more here.
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:
Economists project annual “core” PCE — which excludes the volatile categories of food and energy — to have clocked in at 2.6% in January, down from the 2.7% seen in December. Over the prior month, economists project “core” PCE at 0.3%, above the 0.2% seen the month prior.
Due to a difference in components, the data is expected to show a more muted pace of price increase for the month of January than the Consumer Price Index (CPI). That report showed the largest rise in core prices since April 2023.
Morgan Stanley chief US economist Michael Gapen wrote in a note to clients that a 2.6% increase in core PCE for January “implies a meaningful step down in the 12-month pace of core inflation” and is in line with their call for a quarter-percentage-point interest rate cut from the Fed in June.
Read more here.
Economic data: PCE inflation (January); MNI Chicago PMI (February)
Earnings: fuboTV (FUBO)
Here are some of the biggest stories you may have missed overnight and early this morning:
Elon Musk is putting his investors’ faith to the test
Nvidia CEO: Our auto business doubled — and it’s just the start
Retail giants face growing pushback over retreat from DEI
Bitcoin down 25% from all-time high as crypto rout worsens
Gold on track for worst week this year as investors book profits
Steep drop in credit scores hits student loan borrowers
Tencent fires up AI race with model it says outdoes DeepSeek
Gold (GC=F) prices are falling as a rising dollar (DX-Y.NYB) dents appetite for the precious metal.
Bloomberg reports:
Gold was on track for its first weekly loss of 2025 as investors booked profits from a record-breaking rally amid increasing concern over President Donald Trump’s tariff agenda, which has strengthened the US dollar.
Bullion traded near $2,860 an ounce, down for a second straight session. That’s after Trump said Thursday that tariffs on Canada and Mexico were set to be implemented on March 4, and he would impose additional levies on Chinese imports. The greenback climbed, making the precious metal less appealing for foreign investors as it’s denominated in the currency.
Gold’s decline in recent days has come after increasing haven demand helped push prices to a record high of $2,956.19 an ounce on Monday.
Read more here.
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.
Reuters reports:
Bitcoin, the world’s largest cryptocurrency by market value, was last down more than 5% on the day at $79,666, trading below $80,000 for the first time since November 11.
“Bitcoin’s fall below $80k shows that positive sentiments from a crypto-friendly administration and high-profile endorsements have run their course,” said Joshua Chu, Co-Chair of the Hong Kong Web3 Association.
The world’s largest cryptocurrency has shed a quarter of its market value since mid-December, when it topped $105,000 on optimism that the Trump administration would champion a strategic bitcoin fund and loosen regulation.
Beyond a flurry of appointments of crypto-friendly officials when he took office, there has been little concrete news around that policy for investors.
“Momentum ran out when there was no fresh news to keep driving the bullish narrative,” said Kyle Rodda, senior financial market analyst at Capital.com.
Read more here.
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.
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