U.S. stock markets kicked off Tuesday, February 25, with a mixed performance as investors navigated corporate earnings reports and economic data. The S&P 500 edged up by 0.1%, while the Dow Jones Industrial Average gained 0.4%. However, the Nasdaq Composite dipped 0.3%, dragged down by a slump in tech stocks.
Nvidia Slips Ahead of Earnings Report
Nvidia (NVDA) remained under pressure ahead of its highly anticipated earnings release set for Wednesday after the bell. The AI chip giant saw its stock decline by 0.6% on Tuesday, extending its year-to-date losses to 3.5%. Wall Street remains cautious amid concerns about demand cycles, production challenges, and shifting capital expenditure trends in the AI sector.
Home Depot Rallies on Strong Q4 Results
Amid a flurry of earnings announcements, Home Depot (HD) delivered a standout performance, with shares climbing 2% after reporting better-than-expected fourth-quarter results. The home improvement retailer continues to benefit from strong consumer spending and resilient housing market trends.
Tempus AI Plummets After Weak Earnings, JPMorgan Downgrade
Tempus AI (TEM) emerged as one of the biggest losers on Tuesday, tumbling more than 10% to $62 per share. The healthcare technology company posted disappointing quarterly earnings, prompting JPMorgan to downgrade its stock rating from overweight to neutral. Investor sentiment took a hit as concerns grew over the company’s growth trajectory in an increasingly competitive market.
Bitcoin Falls Below $90K, Hits Three-Month Low
Cryptocurrency markets remained under pressure as Bitcoin slipped below $90,000, marking its lowest level in three months. The digital asset is now trading nearly 20% below its all-time high, which was reached on President Donald Trump’s inauguration day. The decline in Bitcoin and major tech stocks weighed on both the S&P 500 and Nasdaq, pulling them further into negative territory.
U.S. Consumer Confidence Data on Investors’ Radar
Market participants are eagerly awaiting the release of the latest U.S. consumer confidence data at 10 a.m. ET. Economists expect the February reading to come in at 102.3, down from 104.1 in January. This report comes ahead of key economic indicators later in the week, including the Federal Reserve’s preferred inflation gauge, the PCE index, set for release on Friday.
European Markets Gain as Investors Track Earnings and Geopolitical Developments
In contrast to Wall Street’s mixed performance, European markets posted gains on Tuesday. The Stoxx 600 rose 0.5% by mid-afternoon in London, with Germany’s DAX extending its upward momentum following the country’s federal election results. Investors in Europe remained focused on corporate earnings and geopolitical shifts impacting the broader economic outlook.
Asia-Pacific Markets Struggle Amid U.S. Tariff Threats and Rate Decision
Asian markets tumbled on Tuesday as renewed U.S. tariff threats from President Donald Trump rattled investors. Additionally, the Bank of Korea’s latest rate decision added to market uncertainty.
- Japan’s Nikkei 225 led the regional losses, dropping over 1% to close at 38,237.79, while the Topix shed 0.43% to 2,724.7. However, major Japanese trading houses surged after Warren Buffett signaled plans to increase Berkshire Hathaway’s stake in the conglomerates.
- South Korea’s Kospi fell 0.57% to 2,630.29, while the small-cap Kosdaq declined 0.50% to 769.43 as investor sentiment remained weak.
With global markets reacting to a mix of corporate earnings, policy decisions, and geopolitical factors, investors remain on edge as they await further data that could shape the financial landscape in the weeks ahead.
