New York Stock Exchange Closed with Volatility

The New York Stock Exchange concluded the day with a volatile performance following consumer confidence data that fell below expectations. The Dow Jones index rose by 0.37 percent to 43,621.16 at closing, while the S&P 500 index fell by 0.47 percent to 5,955.25 and the Nasdaq index declined by 1.35 percent to 19,026.39. President Donald Trump’s announcement that tariffs on Canada and Mexico were progressing “as planned” increased concerns about trade war on the global market. The S&P CoreLogic Case-Shiller National Home Price Index increased by 3.9 percent in December, continuing the upward trend in housing prices. The Conference Board Consumer Confidence Index fell by 7 points to 98.3 in February, marking the lowest level since June 2023 and the largest monthly decline since August 2021. Consumers’ 12-month inflation expectation rose from 5.2 percent to 6 percent in February, with analysts pointing out that increasing inflation concerns led to a decrease in consumer confidence. In the stock market, following new restrictions on chip exports to China, shares in chip sector companies experienced losses: Nvidia dropped by 3 percent, Broadcom by 2.6 percent, AMD by 3.8 percent, and Lam Research by 3.6 percent. Tesla also faced a decline of over 8 percent due to a sharp drop in European sales, while Trump Media & Technology attracted attention with a 7.5 percent drop. The yield on the 10-year US Treasury bond fell by 9 basis points to 4.30 percent, marking the lowest level since December 2023. Richmond Fed President Tom Barkin emphasized that inflation has not returned to the targeted 2 percent level yet, but progress has been made, suggesting that it would be reasonable for monetary policy to remain tight for a while longer. It is noted that this could shape expectations regarding the timing of a Fed interest rate cut.