From Nasdaq: 2025-03-03 16:00:00

In February, all major U.S. equity indices closed lower due to growth/stagflation concerns. 10 of 11 large-cap sectors saw positive earnings growth, with developments from Washington dominating headlines. S&P 500 remained positive for the year, while equal-weighted index outperformed. Treasuries had lower yields, Dollar Index dropped slightly, gold rose, and oil had its first monthly loss since Nov 2024.

Risk-off sentiment prevailed in February due to growth/stagflation worries, Trump policy uncertainty, and trade tensions. Analysts highlighted negative impacts of Trump’s policies, with consumer confidence seeing a significant decline. Economic data showed mixed results, with a hotter CPI report raising recession fears. Fed Chair Powell emphasized the need for more work on inflation.

According to FactSet data, Q4 S&P 500 EPS blended earnings growth rate was 18.2%, higher than expected. 75% of S&P 500 companies beat EPS expectations, with sales 0.8% above expectations. Earnings growth was broad-based across large caps, with positive reactions following earnings releases. Fed Fund Futures predict a 90+% chance of a hold at the March meeting.

Looking ahead, market focus will be on Friday’s nonfarm payrolls report for February. Economists predict a steady unemployment rate and new job additions. Fed Speak headlines leading up to the March FOMC meeting, along with Chair Powell’s keynote speech, will be closely watched. Q1’25 triple witching will occur on March 21st.



Read more at Nasdaq:: February 2025 Review and Outlook