Close Menu
Sunshine News Network
  • Home
  • Daily
    • Entertainment
  • Florida
  • Latest News
    • Opinion
  • Politics
  • Sports
  • Trending
  • USA
  • Business
  • Crime

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

The world’s largest cruise ship arrives in Port Canaveral

August 9, 2025

Climate-friendly homes start with energy ratings

August 9, 2025

How to profit from the revival of Y2K fashion among Gen Z

August 9, 2025
Facebook X (Twitter) Instagram
  • Home
  • Daily
    • Entertainment
  • Florida
  • Latest News
    • Opinion
  • Politics
  • Sports
  • Trending
  • USA
  • Business
  • Crime
Facebook X (Twitter) Instagram Pinterest
Sunshine News Network
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
  • Crime
Sunshine News Network
Home » Dow Jones suffers from a new financial fear on the worst day of 2025, and options expire
USA

Dow Jones suffers from a new financial fear on the worst day of 2025, and options expire

adminBy adminFebruary 22, 2025No Comments6 Mins Read0 Views
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email


“We don’t think investors should be overreacting to one data point,” said one market strategist as the Dow fell 700 points.

The Blue Chip Dow Jones Industrial Average suffered the worst day of the year to date, plummeting more than 700 points as investors fear the health of the US economy.

When the bell closed on February 21, the Dow Jones raised 748.63 points (1.69%) to 43,428.02. The index recorded a 2.5% decrease per week, but an annual increase of 2%.

The Tech Heavy Nasdaq Composite Index fell to 19,524.01 by 438.36 points (2.2%). It also recorded a weekly loss of 2.5%, an increase of 1.1% so far in 2025.

The S&P 500 fell 104.39 points (1.71%) to 6,013.13. The index fell 1.66% this week, but it kept its profits in 2025, up 2.2%. The S&P 500 was off the new record high early in trading week.

Traders have revolved around the defence sector, including consumer staples, healthcare and utilities. This is a common trading tactic when economic growth concerns arise.

What happened on Wall Street?

A blend of expired options and poor economic data has driven sharp selling.

Approximately $2.7 trillion options related to the Stock and Exchange Trade Fund (ETF) were ready to expire at the end of trading week. In other words, these contracts are no longer valid. Expiration dates usually cause major price fluctuations.

Related Stories

Expectations for inflation jump to 30 years, causing consumer trust to collapse
Can Trump's steel aluminum tariffs revive US manufacturing control?

The lack of data also led to concerns about the broader health of the national economy.

The February S&P Global Services Purchase Manager Index (PMI), a monthly measure of the general economic direction of the sector, was slipped into the contraction area for the first time in more than two years. The report revealed slower new orders, lower capacity, reduced employment, increased input costs and optimistic declines.

Chris Williamson, chief business economist at S&P Global Market Intelligence, says the worse-than-expected figure was driven by the new administration’s policies and uncertainty over cold winter weather.

“Driving into anecdote reports from companies in the PMI Survey Survey, US service companies are looking at the uncertainty and instability surrounding new US government policies, including reducing federal spending and tariff-related developments. , widely criticised lower sales and activity levels,” Williamson said.

“We hope that unfavourable (cold) weather will also contribute in some cases like January, and at least prove that at least some of the weaknesses these days are temporary.”

US manufacturing was stable as S&P Global PMI remained in expansion mode for the second consecutive month, rising to its highest level since June 2024. It also surpassed market estimates amidst increased factory output and employment profits.

Investors have digested the University of Michigan’s latest consumer sentiment index.

Furthermore, inflation expectations rose by 4.3% in the year, which reached 4.3%, from 3.3% in January. The five-year outlook has skyrocketed to 3.5%, the highest since 1995.

The terrible measurements were driven by “the fear of imminent rise in prices due to tariffs.”

“Personal finances and short-term economic outlook expectations fell by nearly 10% in February, while the long-term economic outlook fell by about 6%, the lowest reading since November 2023. ”, HSU said in the report.

President Donald Trump received an executive order on tariffs at his elliptical office on February 13, 2025 (Kevin Lamarck/Reuters)

President Donald Trump received an executive order on February 13, 2025 in his oval office. Kevin Lamarck/Reuters

In the first month of the new administration, President Donald Trump proposed mutual tariffs, 25% of steel and aluminum imports to all trading partners, and 25% of import duties on Canadian and Mexican goods that enter the United States. did.

The widespread sale sent investors to US Treasury securities as yields went red all over the board. The benchmark 10-year yield reduced its 6.8 basis points to 4.431%. Over the two years, 6.6 basis points fell to 4.2%, and 30-year bonds went from 5.8 basis points to 4.68%.

It’s not time to panic, experts say

Investors should refrain from panic, according to Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.

“The expiration date of options could be added to some of the volatility from weaker economic data, but we’re trying not to read too much of a single data point into one set,” Tentarelli told Epoch Times I mentioned it in a memo sent by email.

“I don’t think investors need to overreact to one data point, especially I don’t think this week’s S&P 500 will only come out of new highs. Rather than predicting economic data points If you look at the soft series, it raises more red flags.”

Gina Bolvin, president of Bolvin Wealth Management Group, believes the foundations are solid enough to keep the bull market wild.

“We still have a strong foundation for the bull market to continue. Revenue growth is up 15% and the Fed may be suspended, but the next move will be reduced,” Volvin said. It stated in a memo sent by email to the Epoch Times.

The Federal Reserve has suspended rate-cutting cycles and indicates that policy measures will not be taken until further advances inflation. Additionally, financial authorities are beginning to investigate the impact of changes on Trump’s trade and immigration policies.

According to the CME FedWatch tool, the US Central Bank is not expected to cut interest rates until its policy meeting in September.

Ultimately, “creepy” consumers could be good news for the US, as they could help reduce inflation in the coming months, Volvin added. Annual inflation rate rose for the fourth consecutive month in January, reaching 3% for the first time since June.

Walmart stocks were roughly 6% during the trading session on February 20, with large retailers forecasting sales and profits for this fiscal year.

CFO John David Rainey suggested in a post-revenue call that consumer spending could be slower, but shoppers say they are “resilient” and focus on value I proposed that.

“Our outlook assumes a relatively stable macroeconomic environment, but acknowledges that there is still uncertainty related to consumer behavior and global economic and geopolitical conditions. “Rainie said.

Despite potential headwinds from Trump’s tariffs, Jan Hatzius, chief economist and head of Goldman Sachs Research, believes the world’s biggest economy’s growth outlook is still on track It’s there.

“The US is still looking for about 2.5% growth,” Hatzius said on the Goldman Sachs Exchange podcast. “We believe that core PCE inflation will be something like 2.5% by the end of the year. And we still think that in that environment the Federal Reserve may offer some additional fee reductions. I pushed that out to some extent.”

The economy has seen changes in the earthquake, but the outlook for financial institutions from November 2024 has not changed much, Hatzius pointed out.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
admin
  • Website

Related Posts

USA

Thames water overhaul comes amid privatization, scrutiny of foreign ownership

June 10, 2025
USA

One of the worst parental leave in the UK, the committee discovered

June 10, 2025
USA

Victims of Chinese bank scandal attacked by security while petitioning frozen accounts, sources say

June 10, 2025
USA

How do major US stock indexes come to June 9th?

June 9, 2025
USA

LA protests turn into riot over the arrest of illegal immigrants

June 9, 2025
USA

Easily America | Epoch era

June 9, 2025
Add A Comment
Leave A Reply Cancel Reply

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Editor's Picks

The world’s largest cruise ship arrives in Port Canaveral

August 9, 2025

Climate-friendly homes start with energy ratings

August 9, 2025

How to profit from the revival of Y2K fashion among Gen Z

August 9, 2025

SpaceX Crew-10 Returns to Earth towards Morning Splashdown – Orlando Sentinel

August 9, 2025
Latest Posts

Florida is growing to affordable prices. Do politicians notice?

July 10, 2025

Donald Trump, Paramount Global and the ’60 Minutes’ travesty

July 10, 2025

Record-breaking state funding updates hopes for Florida citrus crops

July 9, 2025

Welcome to Sunshine News Network – your trusted source for the latest and most reliable news in Florida.

At Sunshine News Network, our mission is to provide up-to-date, in-depth coverage of everything that matters to Floridians. From breaking news and local events to lifestyle trends and weather updates, we are here to keep you informed, engaged, and connected with the Sunshine State.

Facebook X (Twitter) Instagram Pinterest YouTube

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Facebook X (Twitter) Instagram Pinterest
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
  • Crime
© 2025 sunshinenewsnetwork. Designed by sunshinenewsnetwork.

Type above and press Enter to search. Press Esc to cancel.