US stocks sold off into the close on Monday as investors weighed the prospects of President Donald Trump’s tariff policies and also shifted focus to this week’s Nvidia (NVDA) earnings.
The Dow Jones Industrial Average (^DJI) was little changed on the heels of its worst week since October. The S&P 500 (^GSPC) fell 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) fell 1.2%.
Stocks’ comeback attempt fizzled after Friday’s steep declines capped a losing week, which was marked by data showing American consumers and businesses are becoming concerned about Trump’s tariff plans.
During a press conference on Monday, President Donald Trump suggested tariffs on Mexico and Canada would “go forward on time, on schedule,” once a month-long delay is over next week.
Meanwhile, how Nvidia is navigating the looming threat of those tariffs will be closely watched when the AI chipmaker reports its results on Wednesday — the highlight of the earnings week. Eyes are also on Big Tech’s demand for AI and risks from China-based DeepSeek’s lower-cost tech.
Nvidia fell 3% while Microsoft (MSFT) lost ground after an analyst report that it is pulling back on data center construction. But Apple’s (AAPL) stock tipped higher after it pledged to spend and invest $500 billion in the US.
Other key events this week include the January report for the Personal Consumption Expenditure (PCE) index on Friday. The PCE index is the Federal Reserve’s preferred measure of inflation. Reports on US GDP, the housing market, and consumer confidence are also due in the coming days.
US stocks fell on Monday as the threat of tariffs against Mexico and Canada were put back on the table, and investors awaited this week’s Nvidia (NVDA) earnings.
The Dow Jones Industrial Average (^DJI) was little changed, while the S&P 500 (^GSPC) fell 0.5%.
The tech-heavy Nasdaq Composite (^IXIC) fell 1.2% as Microsoft (MSFT), Nvidia (NVDA), and Amazon (AMZN) all declined.
The selling intensified in the last hour of trading after President Trump said tariffs against Mexico and Canada would move forward once the one-month delay expires next week.
“The tariffs are going forward on time, on schedule,” Trump told reporters on Monday afternoon.
Meanwhile, all eyes will be on AI chip heavyweight Nvidia when it reports quarterly results on Wednesday after the bell. Nvidia shares ended the session down
On Monday, Apple (AAPL) shares gained slightly after the iPhone maker announced a $500 billion investment plan in the US over the next four years, including a manufacturing facility in Houston and the hiring of 20,000 new workers.
Yahoo Finance’s Alexandra Canal reports:
Stocks staged a modest comeback to kick off the week as investors largely shrugged off the worst trading action of the year on Friday when fears over inflation and economic uncertainty dragged down the major indexes.
In mid-afternoon trading, the Dow (^DJI) inched up around 0.5%, while the benchmark S&P 500 (^GSPC) secured gains of around 0.2%. The tech-heavy Nasdaq (^IXIC) fell around 0.2%, burdened by shares of Palantir (PLTR), which declined another 8% on reports of government budget cuts.
“Multiple factors fueled the decline on Thursday to Friday,” Fundstrat head of research Tom Lee wrote in a note to clients on Monday, referencing Walmart’s (WMT) soft guidance, as consumer spending fears came into focus, along with the potential economic impact of tariffs and Microsoft’s (MSFT) reported decision to cancel some leases for data center capacity.
Read more here.
The Dow Jones Industrial Average (^DJI) rebounded 0.5% on Monday as shares of Apple (AAPL) and Nike (NKE) rallied.
Nike gained 5% after Jefferies analysts put the stock on its Top Pick list, citing bullish expectations for the sports apparel giant’s new CEO, Elliott Hill.
Meanwhile, shares of Apple rose more than 1% after the iPhone maker announced a $500 billion investment plan for its US operations, which includes a manufacturing facility in Texas and the hiring of 20,000 new workers.
“We believe Apple’s spending plan is a direct strategy to earn an exemption from tariffs on imports from China,” William Kerwin, senior equity analyst for Morningstar, wrote in a note on Monday.
Microsoft (MSFT) shares declined on Monday after the software giant reportedly canceled an unspecified number of data center leases amid the AI spending boom, according to a note from TD Cowen analysts.
Yahoo Finance’s Laura Bratton reports:
The development comes as investors are closely watching whether Big Tech hyperscalers will continue to spend heavily on AI infrastructure.
Microsoft operates data centers equipped with thousands of servers housing advanced computing chips such as Nvidia’s (NVDA) to power its Azure cloud and AI applications. A typical data center operated by a Big Tech “hyperscaler” firm like Microsoft uses over 100 megawatts of power.
“Our initial reaction is that this is tied to Microsoft potentially being in an oversupply position,” TD Cowen’s Michael Elias wrote in a note late Friday. Elias had previously written in January that Microsoft is abandoning new leasing deals for data centers that it was previously interested in.
Read more here.
Tesla shares pared early session losses of more than 2% by afternoon trading on Monday.
Yahoo Finance’s Pras Subramanian reports:
One of Wall Street’s most bullish analysts thinks Tesla’s (TSLA) growth story is still intact and, despite a raft of negative headlines for CEO Elon Musk, upside “catalysts” remain.
Writing in a note to clients on Monday, Wedbush’s Dan Ives noted that Tesla stock has been under pressure for a “myriad of reasons” this year following a massive run-up after President Trump’s win in November.
Along with EV demand issues, Musk’s heavy involvement with the Trump White House and his broadened influence with the DOGE (Department of Government Efficiency) initiative has created a “visible perceived downside impact weighing on Tesla shares,” Ives said.
Read more here.
The S&P 500 (^GSPC) wavered between positive and negative territory on Monday following Friday’s sharp sell-off. Still, the broad-based index remains up more than 2% year to date, and pullbacks should be seen as a buying opportunity, UBS strategists said.
“We see the S&P 500 rising to 6,600 by the end of the year, although the journey up is likely to be accompanied by heightened volatility,” Solita Marcelli, UBS Global Wealth Management chief investment officer of the Americas, wrote on Monday.
“Portfolio diversification and hedging approaches are key, and we think capital preservation strategies can help manage drawdown risks in equities,” she added.
During midday trading on Monday, the S&P 500 pared losses while the Nasdaq Composite (^IXIC) dropped 0.4%. The Dow Jones Industrial Average (^DJI) climbed 0.3% as defensive stocks gained.
Yahoo Finance’s David Hollerith and Jennifer Schonberger report:
Robinhood (HOOD) said the Securities and Exchange Commission ended an investigation into whether the retail trading platform failed to register certain digital assets as securities, another apparent shift by the Trump administration to undo the SEC’s aggressive approach to the crypto industry.
“We applaud the staff’s decision to close this investigation with no action,” said Dan Gallagher, the firm’s chief legal, compliance, and corporate affairs officer. The SEC declined to comment.
Robinhood stock was down roughly 4% in Monday morning trading as other crypto-related stocks also dropped.
Read more here.
Yahoo Finance’s Brooke DiPalma reports:
Starbucks (SBUX) announced it will eliminate some corporate jobs as CEO Brian Niccol focuses on the coffee chain’s turnaround plan.
In a letter obtained by Yahoo Finance sent to employees on Monday, Niccol shared that the company plans to eliminate 1,100 support roles and several hundred additional open and unfilled positions globally.
The memo said employees will be notified by Tuesday, Feb. 25. Niccol said the layoffs are meant to simplify the company’s structure while “removing layers and duplication and creating smaller, more nimble teams.”
Read more here.
Stocks erased early session gains by 10:10 a.m. ET as tech stocks slipped.
The Dow Jones Industrial Average (^DJI) hugged the flat line, while the S&P 500 (^GSPC) fell 0.3%. The tech-heavy Nasdaq Composite (^IXIC) also pared gains to fall 0.9%.
Shares of EV giant Tesla (TSLA) dropped 3%, and AI chip giant Nvidia (NVDA) erased gains of 2% to trade more than 1% lower
US stocks rebounded on Monday following a sharp sell-off on Friday over concerns about the economy as investors looked ahead to Nvidia (NVDA) earnings on Wednesday.
The Dow Jones Industrial Average (^DJI) climbed 0.5%, while the S&P 500 (^GSPC) gained 0.4%. The tech-heavy Nasdaq Composite (^IXIC) added 0.4%
Tech equities revived somewhat as investors awaited the earnings report from Nvidia in the coming days. The AI chip giant’s shares rose 2% in early trading.
Palantir stock (PLTR) was down more than 4% in premarket trading Monday, as shares of the data analytics company were poised to extend last week’s losses.
Bloomberg reports:
The stock is coming off its biggest three-day drop since 2022, following news that Defense Secretary Pete Hegseth plans to reduce projected US military spending by 8% over the next five years, potentially jeopardizing a key source of revenue for the firm.
While some investors speculated Palantir could ultimately emerge as a winner from any push to make the Pentagon more lean, the headline spurred a selloff in what remains tech’s priciest name.
The data-analysis software company has been one of the biggest winners of the artificial-intelligence boom, rising more than 300% in the past year and adding almost $190 billion in market value.
But Palantir stands out among tech firms for the significant share of its revenue that comes from the US government. With President Donald Trump pledging to cut federal spending, what had been a tailwind for the stock has suddenly become a major worry.
Read more here.
Domino’s Pizza stock (DPZ) slid more than 4% premarket after the pizza chain reported fourth quarter revenue and earnings that missed the Street’s mark.
Yahoo Finance’s Brooke DiPalma reports:
Domino’s reported that revenue increased 2.9% year over year to $1.44 billion in the fourth quarter, driven higher by a 4.4% increase in revenue from higher order volumes and food and cardboard prices sold to stores. Same-store sales increased 0.4% compared to the 1.72% jump the Street predicted. Adjusted earnings came in lower too, at $4.89 per share compared to an estimate of $4.93.
Investors may have already anticipated these poor results.
After battling bad weather conditions in the fourth quarter, Citi analyst Jon Tower wrote in a client note prior to earnings that “shares appear to have already moved on from what is likely a soft fourth quarter and start to the first quarter.” Investors have been eyeing growth drivers, such as menu innovation and third-party delivery partners, that could turn the tide in 2025.
Read more here.
Apple (AAPL) said on Monday it will spend and invest more than $500 billion in the US over the next four years. It will build a new factory, boost the budget for advanced manufacturing, and create 20,000 jobs focused on AI and engineering.
The move comes as CEO Tim Cook works to reestablish a relationship with President Trump, amid a risk that Apple could take a hit from a trade standoff between the US and China.
Apple stock slipped around 1% in premarket trading after the news.
Yahoo Finance’s Josh Lipton reports:
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” Cook said in a statement.
“From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing. And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”
Apple’s announcement comes just days after President Donald Trump said Cook promised him hundreds of millions of dollars in US investment, and that the tech giant’s manufacturing would shift from Mexico to the US.
“They don’t want to be in the tariffs,” Trump said Friday.
Read more here.
Economic data: Chicago Fed activity index (January); Dallas Fed manufacturing activity (February)
Earnings: Chegg (CHGG), Cleveland-Cliffs (CLF), Diamondback Energy (FANG), Domino’s Pizza (DPZ), Hims & Hers (HIMS), Riot (RIOT), Trip.com (TCOM), Zoom (ZM)
Here are some of the biggest stories you may have missed overnight and early this morning:
Week ahead: All eyes on Nvidia, Fed-favored inflation data
Apple makes $500 billion bet on ‘future of American innovation’
Microsoft said to be canceling leases for AI datacenters
Trump 2.0 targets China with biggest salvo so far
Warren Buffett: America’s businesses ‘usually find a way’
Morgan Stanley, JPMorgan: Flight from US stocks won’t last
Silicon Valley is going all in on humanoid robots
German stocks surged on Monday after a win for conservatives in Sunday’s election opened the door to a mainstream coalition government and increased spending.
The benchmark DAX (^GDAXI) index of stocks in Frankfurt jumped roughly 1% on the heels of a victory for Friedrich Merz and CDU-led conservative parties. Meanwhile, the MDAX (^MDAXI) gauge of stocks in medium-sized companies soared 2.6%.
Gains for the pan-European Stoxx 600 (^STOXX) were more limited, up about 0.3%. Prosus (PRX.AS) pulled back almost 7% amid its deal to buy Just Eat Takeaway.com (JTKWY, T5WA.F), dragging on the index, while the food delivery company’s shares rose 5%.
In London, the FTSE 100 index (^FTSE) put on 0.3%, but the CAC (^FCHI) in Paris retreated 0.2%. A 10% loss for electric gear maker Schneider Electric (SU.PA, SBGSF) weighed on the French benchmark as investors weighed signs of a pullback in data center spending by Microsoft (MSFT).
Alibaba Group Holding Ltd. (BABA) is poised to make moves on the market open after announcing that the e-commerce giant will pivot into AI infrastructure.
Bloomberg reports:
Alibaba Group Holding Ltd. pledged to invest more than 380 billion yuan ($53 billion) on AI infrastructure such as data centers over the next three years, a major commitment that underscores the e-commerce pioneer’s ambitions of becoming a leader in artificial intelligence.
The internet company co-founded by Jack Ma plans to spend more on its AI and cloud computing network than it has over the past decade. Alibaba envisions becoming a key partner to companies developing and applying AI to the real world as models evolve and need increasing amounts of computing power, the company said on its official blog.
Alibaba is righting a business knocked off-kilter by a government clampdown that began in 2020, refocusing its ambitions on e-commerce and AI. Last week, Chief Executive Officer Eddie Wu declared that Artificial General Intelligence, or AGI, was now its primary objective, joining a race so far led by the likes of OpenAI and big US firms from Microsoft Corp. to Alphabet Inc.
Gold (GC=F) buyers are eyeing a ninth consecutive week of gains. The commodity holds strong around record prices as investors seek stable assets in a volatile market.
Bloomberg reports
Bullion was around $2,937 an ounce, after notching its eighth weekly gain — the longest run since 2020. Gains have been supported by a sharp increase in demand for bullion-backed exchange-traded funds, with holdings last week jumping the most since 2022.
Reports on Friday showed US business activity slowed, consumer confidence waned and expectations for inflation surged. The Federal Reserve’s Chicago President Austan Goolsbee downplayed concerns about price pressures, telling News Nation on Sunday that the figure “wasn’t a great number, but it’s only one month of data. You need at least two or three months for that to count.”
Swaps markets priced in more interest-rate cuts by the Federal Reserve this year following the prints, with traders now expecting the first reduction for 2025 to land in July rather than September. Lower borrowing costs tend to benefit gold, which doesn’t pay interest.
The precious metal hit a fresh peak on Thursday, after climbing 27% in 2024, with mounting concerns over President Donald Trump’s disruptive trade and geopolitical agendas driving demand. Goldman Sachs Group Inc. last week raised its year-end target for the metal to $3,100, saying central-bank buying would be a key driver.
Australian bank stocks are leveling after cratering through the start of 2025.
Reuters reports:
Shares of top Australian banks took a breather on Monday, after a sharp sell-off over the past eight sessions wiped off more than A$63 billion ($40 billion) from their market value.
Shares of the “Big Four” banks logged unprecedented growth last year on strong flows from superannuation funds and retail investors, pushing them to multi-year highs and trading at high multiples to the ASX200 benchmark index.
But last week’s interest rate cut – the first since November 2020 – alongside modest growth earnings, a rise in bad debts and arrears for the major banks triggered a sell-off as investors exited richly valued stocks.
Financials rose 0.8%, as of 0030 GMT, on Monday but were still down more than 7% since February 12, compared with a 3% drop in the ASX200 index.
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In This Article:
Stocks end lower as Trump puts tariffs against Mexico and Canada back on table, tech slides
Stocks remain on solid footing as Wall Street shrugs off last week’s sell-off as only a ‘flesh wound’
Dow gains 200 points as shares of Apple, Nike rally
Microsoft reportedly cancels some data center leases amid $80 billion AI push
Tesla bull says growth story still intact and ‘catalysts’ remain despite Musk antics
Pullbacks are a buying opportunity with the S&P 500 poised to go higher this year, UBS says
Robinhood says a SEC crypto investigation is over
Starbucks to lay off 1,100 employees as CEO works on turnaround
S&P 500, Nasdaq erase gains as tech slides
Stocks rebound as investors await Nvidia results this week
Palantir stock falls premarket as Pentagon budget cuts loom
Domino’s stock falls premarket after earnings miss Wall Street’s estimates
Apple bets $500B on US investment push as Trump tariffs loom
Good morning. Here’s what’s happening today.
German stocks jump as investors embrace election result
Alibaba makes shift to AI, announcing plans to invest $53 billion
Gold keeps near record as inflation drives haven demand
Australian ‘Big Four’ bank shares calm after after $40 billion sell-off
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Dow tumbles more than 700 points as inflation and tariff fears mount
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US stock markets fell sharply Friday after an economic report showed American consumers are growing increasingly fearful of price increases and how President Donald Trump’s tariffs could reignite the inflation crisis.
The Dow Jones Industrial Average fell 748 points, or 1.7%. The broader S&P 500 also sank 1.7% and the Nasdaq was 2.2% lower. The Dow tumbled for the second consecutive day, falling about 1,200 points over the course of Thursday and Friday.
The University of Michigan’s latest survey, released Friday, showed that US consumer sentiment declined in February for the second consecutive month, according to a final reading, down by a steep 10% from January. That was double the decline initially reported earlier this month.
The survey found that Americans are losing confidence in the economy, driven primarily by worries over Trump’s tariffs potentially jacking up prices.
A new CNN poll released Thursday similarly showed pessimism on the rise because of prices: Nearly two thirds of US adults nationwide, 62%, said they feel Trump isn’t doing enough to address inflation. The Michigan survey showed that Americans are now fearful of higher inflation on the horizon.
Investors grew fearful that weak consumer sentiment could lead to a pullback in Americans’ shopping habits. Consumer spending makes up more than two-thirds of the US economy.
Although there’s no evidence that a recession is anywhere on the horizon, economic data has weakened in recent months. Job growth has fallen off over the course of the past year as employers wait to see what the Trump administration’s economic policy will bring – particularly around tariffs, which could severely dent companies’ bottom lines. Housing continues to slow down: a National Association of Realtors report Friday shows that sales of existing homes fell 4.9% in January from the previous month, while prices shot up to a record high for the month, exacerbating America’s home affordability crisis.
And retail sales have dropped recently, too.
Walmart warned Thursday that its sales and profit growth will slow this year – a surprise to many on Wall Street who bet that Walmart’s low prices on essentials would continue to ignite the company’s stellar growth over the past several years, even during the worst of the inflation crisis.
The retailer blamed consumer fears over rising prices and tariffs for its lackluster growth forecast. That was echoed by Monday’s University of Michigan survey, which found the drama surrounding tariffs has affected Americans’ perception of prices: Expectations for inflation in the year ahead surged this month to 4.3%, according to the Michigan survey, up a full percentage point from January to the highest level since November 2023.
Also dragging down stocks was UnitedHealth, a key Dow component, which sank 7% on a Wall Street Journal report that the US Department of Justice is investigating the company for its Medicaid billing practices. The company strongly denied the Journal’s report.
Despite the plunge, stocks are very close to their all-time highs. The S&P 500 hit a record on Wednesday before falling back just a bit Thursday.
CNN’s Bryan Mena contributed to this report.
The story has been updated with additional content.
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