On Friday, the S&P 500 Index closed down 0.43%, the Dow Jones fell 1.05% to a 3.5-week low, and the Nasdaq 100 dropped 0.30%. Market fears were exacerbated by the collapse of UK lender Market Financial Solutions, raising concerns over potential bank defaults. The U.S. Producer Price Index (PPI) for January rose by 0.5% month-over-month and 2.9% year-over-year, exceeding expectations and dampening speculation about potential interest rate cuts from the Federal Reserve.
In positive news, the February MNI Chicago PMI unexpectedly surged to 57.7, indicating the fastest pace of economic expansion in over three years. Dell Technologies saw a significant stock increase of over 21% following a strong earnings forecast for its AI servers. Overall, 74% of S&P 500 companies reporting results exceeded earnings expectations this quarter, suggesting robust corporate performance.
Geopolitical tensions also impacted markets, with WTI crude oil rising by over 2% to a seven-month high amid concerns about diplomatic talks regarding Iran’s nuclear program. President Trump indicated he is considering military options for pressure on Iran, emphasizing the urgency for an agreement by early March.
