U.S. Stock Market Weekly Report: February 17–22, 2025

Market Overview

This week, U.S. stock markets operated on a holiday-shortened schedule (closed Monday for Presidents’ Day), with only four trading days. The S&P 500 hit a record high of 6,147 on Wednesday but reversed sharply on Thursday and Friday. By the close on February 21, all major indices posted declines:

Dow Jones Industrial Average (DJIA): Fell ~1.7% on Friday, with a weekly drop of ~2.5%.
S&P 500 (SPX): Dropped 1.71% on Friday, ending the week down 1.7%-1.66%.
Nasdaq Composite (NDX): Slid 2.2% on Friday, finishing the week with a 2.5%-2.51% loss.

Friday’s steep sell-off erased much of the week’s gains, driven by macroeconomic and geopolitical concerns. Among key stocks:

Apple (AAPL): $245.55 (-0.08%)
Microsoft (MSFT): $408.21 (-1.92%)
Amazon (AMZN): $216.58 (-2.83%)
Alphabet (GOOGL): $179.66 (-2.66%, per real-time data adjusted to -3% daily drop)
Tesla (TSLA): $337.80 (-4.69%)
Nvidia (NVDA): $134.43 (-4.07%)

Key Influences This Week

Federal Reserve Meeting Minutes & Interest Rate Policy
The Federal Reserve’s January meeting minutes, released on Wednesday, underscored a cautious stance on rate cuts, with policymakers insisting on further evidence of slowing inflation before easing. This hawkish tone disappointed investors who had anticipated earlier rate reductions, contributing to Thursday’s retreat and Friday’s sharp decline as rate-cut optimism faded.
U.S. Defense Budget Cuts Impact
Potential U.S. defense budget reductions sparked concerns, hitting defense-related stocks hard. Palantir Technologies (PLTR) dropped over 10% due to fears of reduced government contracts. Broader market sentiment weakened as investors assessed the ripple effects on the defense sector and its suppliers, amplifying economic uncertainty.
Tech Sector Pressure: Magnificent Seven Divergence
The “Magnificent Seven” tech giants displayed mixed performance:

Meta (META): Ended a 19-day rally, falling ~3% on Friday as momentum waned.
Nvidia (NVDA): Declined 4.1%-4.07% on Friday, with investors nervous about its February 26 earnings amid lofty AI-driven expectations.
Tesla (TSLA): Fell for five consecutive days, down 4.69% by week’s end, signaling a cooling in growth stock enthusiasm.
High valuations and macroeconomic headwinds increased volatility in the tech sector.

U.S.-Russia Negotiations & Geopolitical Uncertainty
U.S.-Russia peace talks in Saudi Arabia over the Ukraine conflict heightened geopolitical risks. No resolution emerged, pushing investors toward safe-haven assets:

Gold prices rose on Thursday.
U.S. 10-year Treasury yield dropped to 4.43%, reflecting a risk-off shift to bonds.

Inflation & Tariff Concerns
Fears of new U.S. tariff policies resurfaced, with potential supply chain cost increases threatening to exacerbate inflation. The University of Michigan survey reported consumer inflation expectations at a 30-year high (since 1995), raising doubts about the Fed’s willingness to cut rates soon. This uncertainty fueled Friday’s market drop.

Market Reactions and Trends

Risk-Off Sentiment: Investors shifted from equities to gold and Treasuries. Small-cap stocks (Russell 2000) saw midweek declines before a partial Friday recovery, underscoring broader caution.
Technical Pullback: The S&P 500’s “big red candle” on Friday after Wednesday’s peak suggested a short-term reversal. A break below the January 13 low of 5,773 could signal further downside.
Sector Highlights: Defense and tech struggled, while some Chinese stocks (e.g., Alibaba) rose, buoyed by positive sentiment.

Key Events to Watch Next Week

February 26: Nvidia (NVDA) earnings report—a potential catalyst for tech stocks.
February 28-29: Personal Consumption Expenditures (PCE) Price Index release, the Fed’s preferred inflation gauge, will shape rate expectations.

Conclusion

This week’s market was shaped by Fed policy uncertainty, tech stock volatility, geopolitical tensions, and inflation fears tied to potential tariffs. Defense budget cut concerns and a hawkish Fed stance further pressured sentiment, while the Magnificent Seven’s mixed results highlighted sectoral divergence. Next week’s Nvidia earnings and PCE data will be critical for determining whether this correction deepens or stabilizes.

美國股市週報：2025年2月17日至22日（中文版）

市場概況

本週因總統日假期（週一休市），美國股市僅交易四天。標普500指數週三創下6147點歷史新高，但週四與週五大幅回落。截至2月21日收盤，主要指數全線下跌：

道瓊工業平均指數：週五跌約1.7%，全週下跌約2.5%。
標普500指數：週五跌1.71%，全週下跌1.7%-1.66%。
納斯達克綜合指數：週五跌2.2%，全週下跌2.5%-2.51%。

週五的大跌抹去了本週多數漲幅，受宏觀經濟與地緣政治因素影響。主要股票表現：

蘋果 (AAPL)：245.55美元 (-0.08%)
微軟 (MSFT)：408.21美元 (-1.92%)
亞馬遜 (AMZN)：216.58美元 (-2.83%)
Alphabet (GOOGL)：179.66美元 (-2.66%，實時數據調整為日跌3%)
特斯拉 (TSLA)：337.80美元 (-4.69%)
英偉達 (NVDA)：134.43美元 (-4.07%)

本週關鍵影響因素

聯準會會議紀要與利率政策
週三發布的聯準會1月會議紀要顯示對降息持謹慎態度，需更多通脹放緩證據。此鷹派立場讓期待降息的投資者失望，週四市場回落，週五跌勢加劇，因降息希望減弱。
美國國防預算削減影響
潛在的國防預算削減引發擔憂，國防相關股票受挫。Palantir Technologies (PLTR)下跌超10%，因政府合同可能減少。投資者評估對國防行業及其供應商的影響，加劇經濟不確定性。
科技股壓力：「輝煌七雄」分化
「輝煌七雄」表現不一：