The three major New York stocks ended the day in a mixed fashion, reflecting a lack of significant economic indicators and a reluctance from investors to continue low-cost buying. The technology sector, in particular, saw a notable decline.

On February 24, the Dow Jones Industrial Average closed at 43,461.21, up 33.19 points (0.08%). The Standard & Poor’s 500 index fell 29.88 points (-0.50%), reaching 5983.25, while the Nasdaq index plunged 23.08 points (-1.21%) and closed at 19,9286.93.

Market analysts noted that the day started with no special economic indicators, leading to a subdued trading environment. The three major indices, which had experienced significant drops the previous week due to economic slowdown concerns, attempted to rebound but faced challenges.

Technology stocks, which had been a driving force for many investors, struggled to regain momentum. Major tech giants such as Apple, Microsoft, Amazon, Meta, Tesla, and Alphabet showed overall declines. Apple rose slightly by 0.63%, but Microsoft fell by 1.03%, Amazon by 1.79%, Meta by 2.26%, Tesla by 2.15%, and Alphabet by 0.21%.

AI-related stocks also faced significant drops. NVIDIA fell by 3.09%, AMD by 2.46%, Qualcomm by 2.62%, Broadcom by 4.91%, Micron by 3.47%, ASML by 0.17%, and TSMC by 3.32%.

Individual investors’ favorite stocks, such as Palantir Technologies, which fell by 10.53%, Bister Energy by 5.11%, and Constellation Energy by 5.88%, also failed to rebound.

Investors Eagerly Await Key Economic Indicators

Investors are closely watching NVIDIA’s results this week and the U.S. personal consumption expenditure (PCE) data. NVIDIA is expected to release its fourth-quarter fiscal year performance after the market closes on February 26. Wall Street anticipates revenues of $38 billion for the fourth quarter and $42 billion for the first quarter.

On February 28, the PCE indicator, a crucial measure for the Federal Reserve, will be announced. In January, the rate of increase in the price index is expected to reach 2.6% compared to the same period last year. The January Consumer Price Index (CPI), which was announced prior to the PCE indicator, rose 0.5% compared to the previous month, exceeding market expectations of 0.3%.

Analysts suggest that the PCE is not expected to be as “surprising” as the CPI, given the detailed items of the January Producer Price Index (PPI).

Treasury Interest Rates and Oil Prices

Treasury interest rates saw a slight decline. The 10-year Treasury Rate and 30-year Treasury Bond Rates were moving near 4.397% and 4.657%, respectively, while the two-year Treasury bond interest rates fell to 4.168%.

In the first half of the year, the rate of interest rate cuts remains low, including interest rates in March. According to the Chicago Product Exchange (CME) Fed Watch, the rate futures market has a 4.00% chance of cutting interest rates by 0.25% in the Federal Open Market Committee (FOMC) in March. The probability of lowering the base rate by 0.25% in May and June is only 21.4% and 51.5%, respectively.

International oil prices, which plummeted last week, rebounded. The price of West Texas Intermediate crude oil at the New York Commercial Exchange is traded at $70.81 per barrel, up 0.58% from the previous trading day.

Implications for U.S. Economy and Investors

The mixed performance of the major indices and the struggles of tech stocks highlight the ongoing volatility in the market. Investors are advised to remain cautious and diversify their portfolios to mitigate risks.

Economic indicators such as the PCE and CPI will play a crucial role in shaping the Federal Reserve’s monetary policy. Investors should closely monitor these indicators to anticipate potential market movements.

The tech sector’s performance is a key area of concern. While the sector has shown resilience in the past, recent declines suggest that investors are becoming more selective. Companies with strong fundamentals and innovative technologies are likely to outperform in the long run.