Xinhua
26 Feb 2025, 05:16 GMT+10
NEW YORK, Feb. 25 (Xinhua) -- U.S. stocks ended mixed on Tuesday, as traders weighed concerns about economic growth and global trade.
The Dow Jones Industrial Average gained 159.95 points, or 0.37 percent, closing at 43,621.16. The S&P 500 fell 28.00 points, or 0.47 percent, marking its fourth consecutive losing session, finishing at 5,955.25. The Nasdaq Composite Index declined 260.54 points, or 1.35 percent, to 19,026.39.
Among the 11 primary S&P 500 sectors, six ended lower, with communication services and energy leading the declines, falling 1.53 percent and 1.47 percent, respectively. On the other hand, consumer staples and real estate outperformed, rising 1.69 percent and 1.14 percent, respectively.
The major indexes moved lower after the latest consumer confidence survey from The Conference Board came in significantly below economists' expectations. The Consumer Confidence Index for February dropped to 98.3, marking its third consecutive monthly decline and the steepest drop since August 2021, as inflation expectations for the coming year rose.
"There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019," Stephanie Guichard, senior economist at The Conference Board, said in a press release. "Most notably, comments on the current administration and its policies dominated the responses."
U.S. homebuilders are also becoming less optimistic about the housing market amid ongoing challenges such as tariffs, elevated mortgage rates, and high housing costs. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index fell to 42 in February, a five-point decline from January and the lowest level in five months. Bloomberg data showed that economists had expected a reading of 46.
"All 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.
Meanwhile, Richmond Fed President Tom Barkin said Tuesday that he wants to keep interest rates "modestly restrictive" until he gains more confidence inflation is returning to the central bank's 2 percent goal. "It is critical that we remain steadfast," he said. "We learned in the '70s that if you back off inflation too soon, you can allow it to reemerge. No one wants to pay that price."
On the corporate front, Tesla shares tumbled more than 8 percent after the electric vehicle maker reported a 45 percent drop in sales in Europe for January. AI chip giant Nvidia was in focus with its highly anticipated earnings due Wednesday.
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