U.S. stock markets delivered mixed signals on Wednesday, February 26, 2025, as early gains faded into a tense standoff between bulls and bears. The S&P 500 inched up 0.81 points (less than 0.1%) to 5,956.06, narrowly escaping its longest losing streak since January. Meanwhile, the Dow Jones Industrial Average dropped 0.4%, and the Nasdaq Composite clawed back 0.3% in a session dominated by tech stock swings.
Nvidia surged 2.8% following bullish AI chip demand forecasts, countering Apple’s 1.6% decline after reports of slowing iPhone sales in China. General Motors jumped 3.1% as it announced a $7 billion shareholder return program, signaling confidence despite cooling EV adoption rates. Treasury yields fell for the third consecutive day, with 10-year notes dipping to 4.1% as investors priced in weaker Q1 GDP projections.
Key Wednesday closes:
- S&P 500: 5,956.06 (+0.01%)
- Dow Jones: 43,433.12 (-0.4%)
- Nasdaq: 19,075.26 (+0.3%)
- Russell 2000: 2,174.17 (+0.2%)
Weekly trends reveal growing sector divergence. While the Dow has clung to a 0.01% YTD gain, the Nasdaq’s 2.3% weekly drop highlights mounting pressure on big tech valuations. Analysts attribute this ‘split market’ phenomenon to conflicting data: strong consumer spending vs. manufacturing contraction in 12 states.
Year-to-date performance underscores 2025’s economic uncertainty:
- S&P 500: +1.3%
- Dow Jones: +2.1%
- Nasdaq: -1.2%
- Russell 2000: -2.5%
Market strategists warn that absent clear Fed rate cut signals, equities may struggle to build momentum. ‘Investors are pricing in a 55% chance of June rate reductions,’ noted Wells Fargo’s chief economist, ‘but stubborn services inflation could extend this holding pattern.’