U.S. government bond yields fell for the second consecutive day following a larger-than-expected drop in January retail sales. The 10-year bond yield decreased to 4.44%. In the stock market, Nvidia and Apple saw gains, while Microsoft and Tesla declined. Former President Trump is pushing for reciprocal tariffs on nations taxing U.S. imports. The S&P 500, Nasdaq, and Dow Jones showed mixed results, with Airbnb surging 14.4% and DaVita falling 10.5%. Markets will close on Presidents Day.
U.S. Government Bond Yields Decline as Retail Sales Drop
The yields on government bonds have decreased for the second straight day, following a report indicating that U.S. retail sales fell more than anticipated in January, with a 0.9% decline last month after a revised increase of 0.7% in December.
The yield on the 10-year bond decreased by approximately 7 basis points, landing at 4.44%.
Stock Market Movements and Economic Updates
In the stock market, Nvidia experienced a nearly 2% increase, while Apple saw a gain of 1.1%. Conversely, Microsoft dipped about 0.5% and Tesla fell by 0.6%.
Recently, former President Trump instructed his economic team to devise strategies for implementing reciprocal tariffs on all nations that impose taxes on U.S. imports, although this directive does not propose any new tariffs.
Howard Lutnick, nominated by Trump for Secretary of Commerce, mentioned that the administration plans to address each affected country separately, with studies on the issue expected to conclude by April 1.
The market has been influenced by the imposition of tariffs on steel and aluminum imports, an unexpected rise in consumer prices in January, and positive remarks from Federal Reserve Chairman Jerome Powell, contributing to this week’s market fluctuations.
“Everything revolves around Trump right now. Everything else is just noise,” stated Dennis Dick, a trader at Triple D Trading in Ontario, Canada. “What everyone is focused on is: ‘What will Trump do next, and where are his trade wars going?’”
The three major indices are on track to record solid weekly gains, with the S&P 500 nearing the record it achieved three weeks ago.
Early in the week, stocks received a boost after data showed that producer prices in the U.S. rose in January, while significant components of the core personal consumption expenditures index, a critical metric monitored by the Fed, remained stable or decreased.
According to LSEG data, traders are anticipating at least a 25 basis point rate cut by year-end, with nearly a 50% chance of an additional reduction.
The S&P 500 was up 0.08%, reaching 6,119.88 points.
The Nasdaq increased by 0.31% to 20,008.17 points, while the Dow Jones Industrial Average slipped 0.22% to 44,614.72 points.
Among the 11 sector indices in the S&P 500, six made gains, with energy leading at 0.55%, followed closely by communication services at 0.52%.
Airbnb experienced a significant surge of 14.4% after reporting an increase in its quarterly revenue.
In contrast, DaVita dropped 10.5% after the dialysis company forecasted an annual profit that fell short of estimates. Berkshire Hathaway also reduced some of its holdings in the firm.
Applied Materials faced a 6.4% decline after the chip manufacturing equipment company reported revenue that did not meet projections for the second quarter.
U.S. markets will observe a closure on Monday in observance of Presidents Day.
In the S&P 500, advancers outnumbered decliners with a ratio of 1.2 to 1.
The S&P 500 noted 36 new highs and 7 new lows; the Nasdaq recorded 118 new highs and 72 new lows.