Weekly Market Highlights. February 24 – March 1.

Market News |

Here’s a quick recap of last week’s events (February 24 – March 1) in the US stock market. From major index movements to key economic events, stay informed about the trends that matter to halal investors like you.

Market Overview

  • Most major U.S. indexes declined for the second consecutive week, except for the Dow Jones Industrial Average (+0.95%), which outperformed.
  • Growth stocks, particularly tech, saw a sharp drop, with the Nasdaq Composite recording its worst week since September.
  • NVIDIA fell 8.48% on Thursday despite strong earnings, fueling concerns that the AI rally may be losing momentum.
    • Tariff fears persisted, as President Trump reaffirmed plans to introduce new tariffs by March 4.

Consumer Confidence Drops the Most Since August 2021

  • The Conference Board’s Consumer Confidence Index fell 7 points to 98.3 in February.
  • Expectations index dropped below 80, a level historically associated with recession risks.
  • 12-month inflation expectations jumped from 5.2% to 6%, adding to worries about price pressures.

Inflation Pressures Weigh on Spending

  • Core PCE inflation (Fed’s preferred gauge) rose 0.3% in January; annual rate declined to 2.6% (from 2.9%), still above the Fed’s 2% target.
  • Personal incomes rose 0.9%, but consumer spending contracted, suggesting that inflation and economic uncertainty are restraining spending.

GDP Growth Remains Steady; Jobless Claims Rise

  • Q4 GDP growth held at 2.3%, with strong consumer spending (+4.2%).
  • Full-year 2024 GDP growth came in at 2.8%.
  • Jobless claims increased to 242,000, the highest since October, signaling softening labor market conditions.

Key Takeaways & Market Outlook

  • Consumer confidence is falling sharply, adding to recession fears.
  • Inflation remains sticky, keeping Fed rate cuts uncertain in the near term.
  • Jobless claims rising suggests the labor market may be softening.

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