U.S. and European Markets Flatlined, China Tech Index Advanced to 5-Month High

Alexander Garcia
18 Feb, 2025
Miami

Wall Street indexes flatlined in Tuesday's trading after investors returned from a three-day holiday. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite declined 0.1%, and benchmark indexes lacked direction as investors reviewed geopolitical tensions and domestic inflation outlook.

The S&P 500 index and the Nasdaq Composite have been hovering near record highs amid optimism about earnings, macroeconomic outlook, and labor market conditions. 

Despite the recent uptick in consumer and producer price inflations, investors continued to bet on the Federal Reserve to deliver at least four additional rate cuts totaling 100 basis points. 

Investors are anticipating that the sustained wage increases will continue to drive consumer spending in the months ahead, despite high food prices and rising costs of shelter.

Across the Atlantic, benchmark indexes Paris and Frankfurt traded near record highs, and defense stocks rallied for the second consecutive day in the hopes that the NATO member nations will increase their security spending.

Tech stocks extended their rally for the second week in a row in Hong Kong, and China's political leaders ended their hostile attitude towards the private sector after the success of the artificial intelligence chatbot Deep Seek. 

China's regulators stepped up scrutiny of the private sector in 2020 and squashed the initial public offering of Ant Group, a non-bank financing arm of Alibaba Group, amid worries of rising competition for the state-controlled local banks. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 6,119.46, the Nasdaq Composite edged down 0.1% to 20,009.92, and the Russell 2000 index was up 0.1% to 2,290.91.

The yield on 2-year Treasury notes edged higher to 4.28%, 10-year Treasury notes increased to 4.53%, and 30-year Treasury bonds climbed to 4.73%.

WTI crude oil decreased $0.11 to $71.28 a barrel, and natural gas prices edged lower by $0.01 to $3.72 a thermal unit.

Gold increased by $31.78 to $2,940.78 an ounce, and silver edged up by $0.42 to $32.79.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased 0.52 to 107.10 and traded at a two-year high.

 

U.S. Stock Movers

Southwest Airlines decreased 0.6% to $30.10, and the regional airline said on Monday that it plans to trim its corporate workforce by 15% in order to reduce its costs. 

Delta Airlines declined 0.9% to $64.82 after the company's flight flipped upside down while landing at Toronto's main airport. 

All 80 passengers and aircraft staff survived, but 18 people were reported injured. 

Delta flight 4819 from Minneapolis to Toronto was carrying 76 passengers and four crew members, including 22 Canadian citizens. 

The regional flight was operated by Dela's subsidiary Endeavor Air, and the aircraft was Bombardier CRJ-900.

Charles Schwab Corp. gained 1.4% to $81.48 after the financial services company reported a significant increase in new assets received during January 2025.