Wall Street Indexes Meander Amid Economic Growth and Resurgent Inflation Worries

Barry Adams
25 Feb, 2025
New York City

Wall Street indexes lacked direction in Tuesday's trading, and benchmark indexes struggled to shake off losses in the previous three sessions. 

The S&P 500 index edged down 0.1%, and the Nasdaq Composite decreased 0.2%, as investors reviewed the latest batch of earnings.

Home Depot, Zoom Communications, Smith & Nephew, Keurig Dr Pepper, and Chegg were in focus after they reported quarterly results. 

Investors are increasingly looking for a sign of an economic slowdown amid the growing storm of Trump tariffs, as the White House reiterated its plans to impose the previously announced tariffs on steel and aluminum products shipped from Mexico and Canada. 

Investors are also concerned that the additional tariffs on goods shipped from China, Asia, and Europe will stoke inflation, which could delay the Fed's plan to lower interest rates and push the economy on the brink of a recession.

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.2% to 5,973.87, the Nasdaq Composite edged down 0.7% to 19,159.62, and the Russell 2000 index was up 0.1% to 2,180.98.

The yield on 2-year Treasury notes edged lower to 4.12%, 10-year Treasury notes decreased to 4.33%, and 30-year Treasury bonds declined to 4.59%.

WTI crude oil decreased $0.49 to $70.25 a barrel, and natural gas prices edged higher by $0.04 to $4.02 a thermal unit.

Gold decreased by $11.27 to 2,939.86 an ounce, and silver edged down by $0.18 to $32.08.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 0.21 to 106.38 and traded at a two-year high.

 

U.S. Stock Movers 

Zoom Communications Inc. dropped 3% to $81.10 despite the software company reporting a revenue increase in the fourth quarter of fiscal 2025 ending in January.

The company's weak sales outlook in the current fiscal year weighed on the stock. 

Home Depot eased 0.1% to $382.13 after the home improvement retailer reported steady sales growth in the fourth quarter ending in December.

The specialty retailer said comparable store sales rose 0.8% in the fourth quarter, ending a decline in eight consecutive quarters driven by a rise in the number of transactions and average ticket size. 

Smith & Nephew Plc gained 3.5% to $27.16 after the medical equipment maker reported a revenue increase in the fourth quarter ending in December, despite weakness in the China market.

The company said earnings in the quarter advanced, driven by results from its restructuring efforts. 

Chegg plunged 22% to $1.23 after the online education platform operator reported a 23% drop in its subscription revenue to $128.5 million in the fourth quarter.

For the full year, revenue declined 14% to $549.2 million, and net loss expanded to $837.1 million, and subscribers fell 14% to 6.6 million.

The company guided a first quarter revenue range between $114 million and $116 million and a gross margin between 66% and 67%.