Wall Street traded down after investors adjusted to rising possibilities of slower and fewer rate cuts in 2025. Walmart estimated annual revenue growth to slow in the current fiscal year. In Europe, Airbus, Renault, Mercedes-Benz Group, and Carrefour confirmed a challenging business environment. Japan's indexes dropped amid tariff threats.
Wall Street indexes hovered near record highs, and investors remained positive amid a strong macroeconomic backdrop and labor market conditions. New construction data for January delivered a mixed view on the housing market, and building permits edged up, but starts plunged from the previous month.
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NKLA TOL COF DFS BMBL
Wall Street indexes struggled to rise above the flatline amid a lack of economic updates and corporate news. Defense stocks rallied for the second day in a row in Europe. Tech stocks in China rallied and hovered near five-month highs after Chinese political leaders suspended their hostile attitude to the private sector.
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Fed Chair Powell dodged the question on how the institution plans to deal with the DOGE and its demand to access private information but confirmed that the institution will serve people better if it remains independent. Consumer price inflation accelerated in January, supporting the Fed's case of keeping higher rates for longer.