A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 24, 2025.
Brendan Mcdermid | Reuters
Stocks fell broadly on Tuesday, with the S&P 500 on pace for its fourth consecutive losing session, as traders weighed concerns around economic growth and global trade.
The broad market index ticked down 0.2%. The Nasdaq Composite dropped 1%, with Nvidia’s 1.4% fall leading the downturn. This week’s losses have pulled the tech-focused Nasdaq into negative territory for the year. Meanwhile, the Dow Jones Industrial Average traded higher by 220 points, or 0.5%.
The market took a leg lower after the most recent consumer confidence survey from the Conference Board came in much weaker than economists’ estimates. This follows a series of weak data releases last week, including lackluster manufacturing and retail sales numbers. Cautious forward guidance from Walmart added to worsening sentiment on consumer health and the economy.
“All of that comes together to call into question the underpinning of what has been the strength of the U.S. economy the last couple years, which is the consumer and the job market,” said Ross Mayfield, investment strategist analyst at Baird Private Wealth Management.
SPX in past five days
Investors turned to the U.S. bond market for safety. The benchmark 10-year Treasury yield dropped below 4.3% and touched its lowest level since December.
Bitcoin, which has been correlated with stocks, fell below $90,000 to a three-month low. The blue chip coin is trading almost 20% below its all-time high reached on President Donald Trump’s inauguration day.
Shares of major bank stocks rolled over on Tuesday on rising recession concerns. Goldman Sachs, Wells Fargo and JPMorgan Chase fell more than 1% each.
Momentum stocks that have powered the market’s gains also slipped. In addition to Nvidia, Palantir lost more than 3%, bringing the stock down around 13% for the week. Meta Platforms declined 1.1%. Electric vehicle maker Tesla, another favorite among retail investors, fell more than 8%. The slide brought Tesla’s market capitalization below the $1 trillion threshold.
Escalating trade concerns are also contributing to market uncertainty. President Donald Trump announced on Monday that tariffs on imports from Canada and Mexico “will go forward” after the current 30-day moratorium ends. The White House is also preparing for tighter curbs over China’s semiconductor exports, according to a report from Bloomberg News.
Investors are also looking ahead to Nvidia’s quarterly results release, slated for Wednesday after the bell for more insights on the health of the artificial intelligence trade. Shares are down nearly 5% in 2025, underperforming the broader market.
