U.S. equity markets demonstrating resiliency

Growth expectations are driving performance despite underlying concerns about inflation and global trade dynamics.

Author

silas peters
February 25, 2025

The U.S. equity markets experienced notable movements in the week of February 10 to February 14, 2025:

  • S&P 500: Increased by 1.5%, approaching record highs.

  • Dow Jones Industrial Average: Gained 0.6%.

  • Nasdaq Composite: Rose by 2.6%, closing at a three-week high.

Investor sentiment showed increased pessimism, with 47.3% expressing bearish views—the highest since November 2023. Concerns included trade-war threats, regulatory changes, persistent inflation, and reduced expectations for interest rate cuts.

Despite high inflation reports, market focus shifted from inflation concerns to growth expectations. Optimism was evident due to consumer confidence, falling unemployment, rising wages, and positive manufacturing surveys. This shift led to outperformance in U.S. value stocks, industrials, financials, higher-quality U.S. midcaps, and European equities.

Overall, U.S. equity markets demonstrated resilience, with growth expectations driving performance despite underlying concerns about inflation and global trade dynamics.