Wall Street Looks To Bounce Back After Friday's Rough Ride Triggered By Consumer Sentiment: Analyst Says 'We Continue To Place Our Bets' On Economy's Resilience

Author: Rishabh Mishra | February 24, 2025 07:12am

U.S. stock futures rose on Monday, following Friday's selloff. Futures of all four benchmark indices were trading higher.

Investor anxiety over tariffs and a 10% drawdown in consumer sentiment data on Friday, raised fears of a market correction.

The semiconductor technology giant led by Jensen Huang, Nvidia Corporation (NASDAQ:NVDA) is expected to report its fourth-quarter earnings this week.

The 10-year Treasury yield stood at 4.44%, while the two-year yield was at 4.22%. According to the CME Group's FedWatch tool, there is a 97.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.

Futures	Change (+/-)
Nasdaq 100	0.40%
S&P 500	0.50%
Dow Jones	0.68%
Russell 2000	0.82%

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Friday. SPY was up 0.51% to $603.00, and QQQ advanced 0.40% to $528.16, according to Benzinga Pro data.

Cues From The Last Session

Consumer staples stocks were in a bright spot, while information technology, consumer discretionary, and industrial sectors led the S&P 500’s overall decline on Friday.

Shares of UnitedHealth Group Inc. (NYSE:UNH) fell over 7% following a Wall Street Journal report that the Department of Justice is investigating the company’s Medicare billing practices.

Several economic indicators fueled the market’s downturn, including the University of Michigan consumer sentiment index, which plummeted 10% to 64.7 in January. The survey also revealed a 5-year inflation outlook of 3.5%, the highest since 1995.

Existing home sales experienced a sharp 4.9% decline in January, reaching a seasonally adjusted rate of 4.08 million, the steepest drop in seven months. February’s flash S&P Global PMIs showed a significant, unexpected drop in services, raising concerns about the private sector’s health.

The Dow Jones closed lower by 749 points or 1.69% at 43,428.02 on Friday. The S&P 500 fell 1.71% to 6,013.13, while the Nasdaq Composite fell 2.20% to 19,524.01. The small-cap gauge Russell 200 declined 2.95% to 2,195.35.

Index	Performance (+/-)	Value
Nasdaq Composite	-2.20%	19,524.01
S&P 500	-1.71%	6,013.13
Dow Jones	-1.69%	43,428.02
Russell 2000	-2.95%	2,195.35

Insights From Analysts

Talking about last week's fall on Thursday and Friday after scaling record highs, Ed Yardeni of Yardeni Research, said "Sentiment turned very bearish very quickly at the end of last week because investors aren’t as sure about the economy’s resilience as we are."

"We remain impressed that it grew over the past three years notwithstanding a significant tightening of monetary policy, a mini-banking crisis, and lots of geopolitical turmoil. We continue to place our bets on its resilience," he added.

Talking about the anticipated Nvidia earnings this week, Yardeni said that he expects to hear guidance that "DeepSeek won’t kill spending on AI infrastructure, including datacenters."

"The main risk is that Nvidia will announce yet another delay in its highly anticipated Blackwell GPU, which was first announced in March 2024," he added.

The World Economic Forum estimates that 85 million worldwide jobs may be displaced by AI in 2025 alone. McKinsey Global Institute projects that 375 million jobs (14% of the global workforce) will require "reskilling" by 2030.

Louis Navellier of Navellier & Associates quoted the above data and said, "The AI boom is here and now, and this means that the job market is going to go through some real upheaval in 2025 and beyond."

A surge in layoffs from S&P 500 and Global 1000 companies would likely force the Fed to abandon its "higher for longer" rate strategy and rapidly shift to looser monetary policy, especially if—or when—the unemployment rate reaches 5%, he added.

Charlie Bilello, the chief market strategist at Creative Planning, in an X post, highlighted that the Nasdaq 100 was trading above its 200-day moving average for 489 consecutive sessions, which was its second highest in history since 1986.

The Nasdaq 100 has closed above its 200-day moving average for 489 consecutive trading days, the 2nd longest uptrend in history. $NDXhttps://t.co/rQuXrxVpWs pic.twitter.com/LZoWrhGk7H

— Charlie Bilello (@charliebilello) February 24, 2025

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep on this week:

• No data is scheduled to be released on Monday.

• On Tuesday, Dallas Fed President Lorie Logan will speak in London at 4:20 a.m., ET.

• December's S&P Case-Shiller home price index for 20 cities will be out at 9:00 a.m., ET.

• February's consumer confidence data will be announced at 10:00 a.m., ET.

• Fed Vice Chairman for Supervision Michael Barr will speak at 11:45 a.m., ET.

• Richmond Fed President Tom Barkin will speak at 01:00 p.m., ET.

• On Wednesday, new home sales data for January will be released at 10:00 a.m., ET.

• Atlanta Fed President Raphael Bostic will speak at 12:00 p.m., ET.

• On Thursday, initial jobless claims data till the week ended Feb. 22, January's durable-goods orders data, and GDP's second reading will be announced at 8:30 a.m., ET.

• Kansas City Fed President Jeff Schmid speaks will speak at 9:15 a.m., ET.

• Pending home sales data for January will be out by 10:00 a.m., ET.

• Fed Governor Michelle Bowman will speak at 11:45 a.m., ET.

• Philadelphia Fed President Patrick Harker will speak at 3:15 p.m., ET.

• On Friday, January's personal income, spending, core and headline PCE index, advanced U.S. trade balance in goods, retail and wholesale inventories will be out by 8:30 a.m., ET.

• Richmond Fed President Tom Barkin will speak at 8:30 a.m., ET as well.

• February's Chicago business barometer data will be released at 9:45 a.m., ET.

• Chicago Fed President Austan Goolsbee will speak at 10:15 p.m., ET.

Stocks In Focus:

• Owens Corning (NYSE:OC) was up 0.085% in the premarket on Monday ahead of its earnings, which will be released before the opening bell. Analysts expect it to report earnings of $2.90 per share on the revenue of $2.77 billion.

• Domino’s Pizza Inc. (NASDAQ:DPZ) advanced 1% as Wall Street expects it to report quarterly earnings of $4.91 per share on revenue of $1.48 billion before the opening bell.

• Westlake Corp. (NYSE:WLK) declined 0.28% ahead of its earnings, which will be released before the opening bell. Analysts expect it to report quarterly earnings of $1.09 per share on revenue of $2.94 billion.

• ONEOK Inc. (NYSE:OKE) rose 1.12% as Wall Street expects it to report quarterly earnings of $1.51 per share on the revenue of $6.73 billion after the closing bell.

• Berkshire Hathaway Inc. (NYSE:BRK) was up 1.39% after reporting a 71% increase in operating earnings to $14.5 billion for the fourth quarter.

• Hawaiian Electric Industries Inc. (NYSE:HE) dropped 4.83% after it posted a loss of 40 cents per share for the fourth quarter, versus earnings of 44 cents per share in the year-ago period.

• authID Inc. (NASDAQ:AUID) jumped 4.9% after it was recognized as a leader in biometric authentication by Acuity Market Intelligence, praised for its platform’s accuracy and data protection.

• Nuburu Inc. (NYSE:BURU) plummeted 19.27% after it announced an acquisition agreement to expand its defense business and enter the security sector. It has secured a commitment letter from a private equity group for a deal involving recapitalization, acquisitions, and technology licensing.

• Boxlight Corp. (NASDAQ:BOXL) slumped 20.65% after announcing a fundraising of roughly $2.8 million through a private placement of stock and warrants at $2.13 per share.

Commodities, Gold And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.18% to hover around $70.53 per barrel.

The gold spot index was up by 0.16% to $2,940.60 per ounce easing from the record high of $2,954.97. The Dollar Index was flat at 106.616 level.

Asian markets ended mostly lower on Monday. Except for Japan's Nikkei 225, and Australia's ASX 200 index, all other gauges declined, including India's S&P BSE Sensex index, China's CSI 300, South Korea's Kospi, and Hong Kong's Hang Seng index. European markets were mostly higher in trade.

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Photo courtesy: Shutterstock

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