US stock futures ticked higher on Friday as investors awaited a key inflation reading, while renewed tariff threats from China and ongoing trade tensions added to uncertainty in Big Tech.
S&P 500 (^GSPC) futures rose 0.4%, the Nasdaq 100 (NQ=F) gained 0.2%, and the Dow Jones Industrial Average (YM=F) added 0.5%. This modest rebound follows a sharp Nvidia (NVDA)-led sell-off on Thursday, which rattled tech stocks and sent major indices lower.
Inflation Data Eases Market Concerns
The January Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation gauge, matched expectations, providing some relief to investors.
✅ Annual “core” PCE cooled to 2.6%, stripping out food and energy costs.
✅ This suggests inflation is slowing, reducing pressure on the Fed to maintain higher interest rates.
Recent economic data had sparked worries of a potential slowdown, leading to volatility across markets. However, Friday’s PCE report helped soothe concerns, offering a glimmer of hope for investors navigating a challenging macroeconomic landscape.
Trade Tensions Add to Market Uncertainty
Investors also faced fresh geopolitical risks as China vowed to retaliate against the latest US tariff measures.
🚨 Trump announced an additional 10% tariff on Chinese imports, set to take effect Tuesday.
🚨 He pledged new duties on Mexico and Canada and threatened tariffs on the EU.
🚨 Beijing responded, warning of “all necessary measures” in retaliation.
With markets already under pressure, these trade disputes have fueled renewed uncertainty, particularly in Big Tech—which relies heavily on global supply chains.
Stocks on Track for Monthly Losses Amid Volatility
Heading into the last trading day of February, markets remain on track for steep losses:
📉 Nasdaq Composite (^IXIC) is down over 5% in February.
📉 S&P 500 (^GSPC) and Dow (^DJI) are each set to drop around 3%.
📉 S&P 500 has recorded three daily declines of over 1% this week.
The combination of trade policy uncertainty, interest rate concerns, and tech sector volatility has weighed on sentiment, driving higher market fluctuations.
Bitcoin Sell-Off Deepens Amid Crypto Rout
The cryptocurrency market continued its downward spiral, with Bitcoin (BTC-USD) sinking 7% to its lowest level since November.
🔻 Bitcoin has tumbled 25% from its all-time high, as broader crypto weakness persists.
🔻 Regulatory concerns and profit-taking have contributed to the downturn.
Earnings Impact: Dell and HP Struggle
The earnings season brought mixed reactions, with major tech hardware companies facing pressure:
📉 Dell (DELL) stock slipped 2% as concerns over rising AI server costs grew.
📉 HP (HPQ) dropped 3%, despite meeting expectations.
Tech companies—especially AI and hardware manufacturers—continue to face rising costs and supply chain challenges, contributing to market volatility.
Outlook: Can Markets Rebound in March?
As February wraps up with steep losses, investors are looking ahead to March, hoping for:
🔹 Clarity on interest rates from the Federal Reserve.
🔹 De-escalation of trade tensions between the US and China.
🔹 Earnings-driven tech recovery, particularly in AI and semiconductors.
For now, volatility remains elevated, and traders are closely watching how inflation, trade policies, and tech sector developments will shape the market’s next moves.
