Stocks moved mostly higher early in the session but have given back ground over the course of the trading day on Friday. The major averages have pulled back well off their highs off the session and into negative territory.
Currently, the major averages are posting modest losses. The Dow is down 33.87 points or 0.1 percent at 43,205.63, the Nasdaq is down 63.03 points or 0.3 percent at 18,481.36 and the S&P 500 is down 10.11 points or 0.2 percent at 5,851.46.
The pullback by stocks came as a meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskyy devolved into a shouting match.
The heated exchange came as Trump and Zelenskyy met to discuss a deal on Ukraine’s critical rare earth minerals in exchange for continued aid.
The back-and-forth, which also involved Vice President JD Vance, became increasingly tense as the leaders discussed Trump’s approach to the war between Russia and Ukraine.
The strength seen earlier in the day came as traders looked look to pick up stocks at reduced levels following recent weakness, which saw the Nasdaq plunge to a nearly four-month closing low in Thursday’s session.
The Dow and the S&P 500 also ended the previous session at their lowest closing levels in over a month amid a slump by shares of Nvidia (NVDA).
Buying interest was also generated in reaction to a Commerce Department report showing closely watched readings on U.S. consumer price inflation increased in line with economist estimates in the month of January.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in January, matching the increase seen in December as well as economist estimates.
The annual rate of growth by the PCE price index slowed to 2.5 percent in January from 2.6 percent in December, which also matched expectations.
Excluding food and energy prices, the core PCE price still climbed by 0.3 percent in January after edging up by 0.2 percent in December. The increase by core prices was also in line with estimates.
The annual rate of core PCE price growth slowed to 2.6 percent in January from 2.9 percent in December, which also matched expectations.
The Federal Reserve’s preferred readings on consumer price inflation were included in the Commerce Department’s report on personal income and spending.
However, traders still seemed somewhat reluctant to get back into the markets amid lingering concerns about a global trade war.
After Trump threatened to impose an additional 10 percent tariff on imports from China as early as next Tuesday, China vowed to take “all necessary countermeasures and defend its legitimate rights and interests.”
Sector News
Most of the major sectors are currently showing only modest moves on the day, although substantial weakness remains visible among computer hardware stocks.
Reflecting the weakness in the sector, the NYSE Arca Computer Hardware Index has plunged by 4.0 percent, pulling back further off the record highs set earlier this month.
A steep drop by NetApp (NTAP) is weighing on the sector, with the data infrastructure company plunging by 15.7 percent after reporting weaker than expected fiscal third quarter revenues and providing disappointing fiscal fourth quarter earnings guidance.
Shares of HP Inc. (HPQ) and Dell Technologies (DELL) have also moved sharply lower after the PC makers reported their quarterly results.
Steel, airline and networking stocks are also seeing some weakness on day, while natural gas stocks have moved to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Friday. Japan’s Nikkei 225 Index dove by 2.9 percent, while Hong Kong’s Hang Seng Index plummeted by 3.3 percent.
Meanwhile, the major European markets moved to the upside over the course of the session. While the U.K.’s FTSE 100 Index climbed by 0.6 percent, the French CAC 40 Index inched up by 0.1 percent and the German DAX Index closed just above the unchanged line.
In the bond market, treasuries have moved notably higher following the pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.6 basis points at 4.231 percent.
Business News
U.S. Give Back Ground After Heated Exchange Between Trump, Zelenskyy
2025-02-28 18:23:26
