US stocks closed mixed on Tuesday as potential toughening of China curbs weighed on market optimism while new data signaled fears over future economic growth. Consumer confidence saw its biggest monthly decline in nearly four years as 12-month inflation expectations jumped and recession fears escalated. The tech-heavy Nasdaq Composite finished the volatile trading day down around 1.3%, dragged down by shares of key players like Nvidia and Tesla.
February Consumer Confidence Index from @Conferenceboard falls to 98.3 vs 102.5 est. & 105.3 prior (revised up from 104.1) ; present situation 136.5 vs 139.9 prior; expectations 72.9 vs. 82.2 prior pic.twitter.com/S6VaKTIqOp
— Liz Ann Sonders (@LizAnnSonders) February 25, 2025
The benchmark S&P 500 dropped roughly 0.4%, while the Dow Jones Industrial Average reversed earlier session declines to end the day in the green, up about 0.4%. Significant market moves also came from the cryptocurrency space, where the price of Bitcoin tumbled below $90,000 for the first time since November. Bitcoin touched a low closer to $86,000 in the early morning hours but stabilized at around $88,000 at the market close.
????????Another one bites the dust: @Conferenceboard consumer confidence index plunges 7pt in Feb: largest monthly decline since Aug' 21????
????Present situation: -3.4pt to 136.5
????Expectations: -9.3pt to 72.9⚠️Broad-based drop with growing pessimism about current & future labor/income pic.twitter.com/ibb36qSKs1
— Gregory Daco (@GregDaco) February 25, 2025
Meanwhile, the price of Ether, the world’s second-largest cryptocurrency, fell around 6% to just over $2,500, bouncing off its session lows. Crypto-related stocks, including Coinbase and Strategy, were also under pressure throughout the trading day. President Donald Trump’s signal that his trade overhaul isn’t over has unsettled markets, making them wonder about the impact on growth prospects.
Investors are parsing his brief comment that tariffs on Mexico and Canada might continue, leading to a belief that these policies will weaken the US economy. This prompted traders to increase bets on interest rate cuts.
Consumer confidence falls to its lowest level since this past summer pic.twitter.com/Uve9oGqdmr
— Joe Weisenthal (@TheStalwart) February 25, 2025
AI chip giant Nvidia’s stock was in focus with its highly anticipated earnings report. The company is already facing headwinds from tariffs and export controls. Elsewhere, Tesla’s stock fell more than 8% on Tuesday after the electric vehicle maker reported a 45% drop in European sales in January.
Crude oil prices also slid on Tuesday as traders weighed a muddied demand outlook on global growth concerns. WTI crude oil fell over 2.5% to trade near $69 a barrel, its lowest level since December 23. Brent, the international benchmark, also fell around 2.5% to trade below $73 a barrel. Consumer confidence declined sharply in February as more Americans felt uneasy about the future state of the US economy.
US stocks have been very highly valued for a long time
A case of "gradually then suddenly"?https://t.co/foqGQsBpPY— Jonathan Eley (@JonathanEley) February 25, 2025
Market mixed, consumer confidence plunges
The Conference Board’s Consumer Confidence Index came in at a reading of 98.3, a significant drop from January’s revised 105 and short of the 102.5 expected by economists. “This is the third consecutive month-on-month decline, bringing the Index to the bottom of the range that has prevailed since 2022,” said Stephanie Guichard, senior economist of global indicators at The Conference Board. Meanwhile, the average 12-month inflation expectation jumped from 5.2% last month to 6% in February.
This increase likely reflected a mix of factors, including sticky inflation, the recent jump in prices of key household staples like eggs, and the expected impact of tariffs,” Guichard added. In summary, US stocks showed a mixed performance as market participants weighed the impact of President Trump’s trade policies, plummeting consumer confidence, and significant declines in cryptocurrency values.
