{"id":24562,"date":"2025-02-13T15:07:19","date_gmt":"2025-02-13T21:07:19","guid":{"rendered":"https:\/\/www.eoption.com\/market-review-february-13-2025\/"},"modified":"2025-02-13T15:07:19","modified_gmt":"2025-02-13T21:07:19","slug":"market-review-february-13-2025","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/market-review-february-13-2025\/","title":{"rendered":"Market Review: February 13, 2025"},"content":{"rendered":"\n
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Closing Recap<\/span><\/b><\/p>\n

Thursday, February 13, 2025<\/span><\/b><\/p>\n\n\n\n\n\n\n\n
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Index<\/span><\/p>\n<\/td>\n

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Up\/Down<\/span><\/p>\n<\/td>\n

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%<\/span><\/p>\n<\/td>\n

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Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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DJ Industrials<\/span><\/b><\/p>\n<\/td>\n

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342.75<\/span><\/p>\n<\/td>\n

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0.77%<\/span><\/p>\n<\/td>\n

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44,711<\/span><\/p>\n<\/td>\n<\/tr>\n

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S&P 500<\/span><\/b><\/p>\n<\/td>\n

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63.09<\/span><\/p>\n<\/td>\n

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1.04%<\/span><\/p>\n<\/td>\n

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6,115<\/span><\/p>\n<\/td>\n<\/tr>\n

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Nasdaq<\/span><\/b><\/p>\n<\/td>\n

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295.69<\/span><\/p>\n<\/td>\n

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1.50%<\/span><\/p>\n<\/td>\n

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19,945<\/span><\/p>\n<\/td>\n<\/tr>\n

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Russell 2000<\/span><\/b><\/p>\n<\/td>\n

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26.30<\/span><\/p>\n<\/td>\n

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1.17%<\/span><\/p>\n<\/td>\n

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2,282<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Another stellar day for U.S. stock markets posting solid gains and nearing all-time highs despite another “hotter than expected” inflation reading vs. economist views, as markets put a positive spin on it, while macro fears subside. The January headline and core PPI<\/span> readings were above estimates and prior month levels (similar to the CPI spike on Wednesday), but markets focused on certain components in the Producer Price Index (PPI<\/span>) that pointed to lower inflation, suggesting that the Fed remained on track to cut interest rates later this year. U.S. PPI<\/span> rose 0.4% after an upwardly revised 0.5% gain in December, but key elements in the computation of the core Personal Consumption Expenditures (PCE) index, which the Fed tracks, were actually benign or lower. For instance, components like physician’s office and hospital prices were either broadly unchanged or rose just slightly. Healthcare, with nearly 20% weighting in the core PCE, declined 0.06%. Portfolio management prices, another important item on core PCE, posted a modest 0.4% increase. For now, markets looking for positive market narrative on data, but recall it was only a few years ago that the Fed called rising inflation “transitory”, which proved to be incorrect. Strong set up remains as @ConnorJBates_ notes “No denying we have a favorable setup on the market right now. See if bulls can step up and follow through. Fear & Greed – Neutral 46. AAII<\/span> Investor Sentiment – Highest Bearish Sentiment in a year. 47.3% of participants are bearish. NAAIM<\/span> down again. 75.62 reading.”<\/p>\n

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In other news today, President Donald Trump unveiled a roadmap for charging reciprocal tariffs on every country that charges duties on U.S. imports. The tariffs were not going into effect on Thursday but could begin to be imposed within weeks as Trump’s trade and economic team study bilateral tariff and trade relationships. Trump’s reciprocal tariffs would match the higher duty rates charged by other countries. The reciprocal Trump tariffs are just part of a tariff barrage, including 25% tariffs on steel and aluminum, a 10% tariff on Chinese imports and threatened 25% tariffs on imports from Mexico and nonenergy imports from Canada. U.S. President Donald Trump said that BRICS<\/span> nations (Brazil, Russia, India, China) could face 100% tariffs from the United States “if they want to play games with the dollar.” Meanwhile, European shares closed at a record high, as investors cheered upbeat earnings overseas, while sentiment was also buoyed by signs that Russia’s conflict with Ukraine could end soon. The pan-European STOXX<\/span> 600 index was up 1%, while Benchmark indexes of Germany rose 2% to record highs.<\/p>\n

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Is caution warranted? Goldman Sachs strategy analyst noted retail investors bought the dip after hot CPI<\/span>. This Goldman strategist says the tide is about to turn. “This is the last bullish email that I<\/span> will send for Q1 2025 as the flow demand dynamics are quickly changing, and we are approaching negative seasonals,” he said. January and February are the largest months for inflows into 401(k) and 529 plans, but this flow is expected to fade soon. Corporates are busy buying a record $1.16 trillion share this year, but activity will slow after March 16. Retail investors have been net buyers for 22 consecutive days, with the top three largest buying days on record. However, this trend may be unsustainable, he said.<\/p>\n

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Economic Data<\/p>\n