On Friday, the S&P 500 Index closed up 0.69%, the Dow Jones Industrial Average increased by 0.47%, and the Nasdaq 100 Index rose by 0.87%, recovering from early losses after the Supreme Court struck down former President Trump’s global tariffs. The ruling determined Trump exceeded his authority under federal emergency powers when imposing these tariffs, leading to a spike in stocks.
The US Q4 GDP saw a growth of 1.4%, falling short of the expected 2.8%. The Dec core PCE price index rose by 2.7%, exceeding expectations of 2.6%. Meanwhile, personal spending rose 0.4% month-over-month, surpassing the anticipated 0.3% increase. Manufacturing activity also declined, with the Feb S&P manufacturing PMI dropping to 51.2 from 52.4, indicating a slowdown in economic growth.
Despite the positive performance of stock indices, market reactions were tempered by geopolitical risks and mixed economic signals. The likelihood of a 25 basis point rate cut by the Federal Reserve at the March 17-18 meeting is currently estimated at 5%.
