Market Recap: Stocks Decline, Commodities Steady, and Investors Eye Key Economic Reports

Image Source : Krish Capital Pty Ltd

Index Update

On Tuesday, the S&P 500 and Nasdaq fell for the fourth straight session, declining 0.47% and 1.35%, respectively, as tech stocks weakened. In contrast, the Dow gained 0.37%. Tesla dropped 8.4%, bringing its market capitalization below $1 trillion.

Market Movers

On Tuesday, the top gainers were EverQuote, Inc. (+30.27%), followed by FARO Technologies, Inc. (+16.36%). On the contrary,  Krispy Kreme, Inc. (-30.23%) and Myriad Genetics, Inc. (-25.98%) declined the most the same day.

Commodities Update

WTI crude oil futures hovered around $69 per barrel, near a yearly low, amid US economic concerns, China’s sluggish demand, and geopolitical factors. Expectations of lifted Russian sanctions pressured prices, while fresh sanctions on Iran and a potential OPEC+ output delay provided support. Meanwhile, US crude inventories unexpectedly fell by 0.6 million barrels, countering forecasts of a build.

Macro Update

US mortgage applications fell 1.2% for the week ending February 21, extending a 6.6% drop from the prior week despite lower mortgage rates. High housing prices continued to deter buyers. Refinance applications declined 4%, following a 7% drop, while purchase applications remained flat after a 6% decline, marking five consecutive weeks without significant growth.

Futures Update

US stock futures rose Wednesday as investors awaited Nvidia’s earnings, seen as a potential market catalyst. AI-related stocks, including Nvidia, faced pressure amid concerns over China’s DeepSeek. Traders also looked ahead to the second estimate of Q4 GDP growth and the PCE price index report for insights into economic and monetary policy trends.

After a sharp decline early in the session, stocks managed to recover some ground throughout the trading day on Tuesday, yet still closed the day in negative territory. This ongoing downturn resulted in the Nasdaq and S&P 500 ending lower for the fourth consecutive session. The Nasdaq fell by 260.54 points, or 1.4 percent, closing at a three-month low of 19,026.39, while the S&P 500 dropped 28.00 points, or 0.47 percent, finishing at a one-month low of 5,955.26. From a technical standpoint, the S&P 500 is currently positioned within a rising channel, indicating the potential for a continued upward trend in the near term. The 14-period RSI is sitting around the midpoint, reflecting a neutral stance at these levels. Important technical levels to monitor include 6,100, which may act as resistance, and 5,900, which could serve as support, to help assess the market's next direction.