US stocks waver, Nasdaq to book worst month since 2023

The S&P 500 hovered around the flatline, the Nasdaq fell about 0.6%, and the Dow Jones gained nearly 90 points on Friday, with the tech sector remaining under pressure and traders digesting the latest PCE report and escalating trade tensions.

US stocks waver, Nasdaq to book worst month since 2023

Nvidia shares dropped 2%, extending the previous session’s sell-off after its quarterly results failed to impress investors, despite strong revenue growth. Also, Broadcom was down 0.8%, Tesla fell 0.9%, and Oracle slipped 2%, reflecting broader weakness in the sector. Meanwhile, PCE price data aligned with expectations, with annual rates easing slightly. This provided some relief over inflationary pressures and reinforced market bets on approximately two quarter-point cuts to the Fed funds rate this year.

Geopolitical concerns still hit sentiment

On the trade front, concerns grew as new US tariffs on imports from Mexico and Canada, along with an additional 10% duty on Chinese imports, are set to take effect next week. Investors worried about potential supply chain disruptions and retaliatory measures from key trading partners, which could weigh on corporate earnings and economic growth.

Stocks down in the entire month

For the month of February, the S&P 500 declined 2.9%, snapping a five-month winning streak, while the Nasdaq plunged 5.3%, marking its worst month since September 2023, as rising bond yields pressured high-growth stocks. The Dow Jones, which has shown relative resilience, slipped just 0.2%. Looking ahead, investors remain focused on upcoming economic data and Federal Reserve commentary for further clues on the policy outlook.