Stock market news Feb. 18, 2025

Stocks Surge to Record highs Amid Trade Tensions and Inflation Concerns

The S&P 500 closed at a new record high on Tuesday, February 13, 2025, fueled by a late rally just seconds before the final bell. This surge came despite ongoing concerns about global trade and inflation. The broad market index climbed 0.24% to finish at 6,129.58, briefly reaching an intraday record of 6,129.63. Meanwhile, the Nasdaq Composite edged up 0.07% to 20,041.26, and the Dow Jones Industrial Average added a modest 0.02% to close at 44,556.34.

Energy Sector Leads the Charge

The energy sector emerged as the day’s strongest performer in the S&P 500, surging 1.9%. Halliburton and Valero Energy spearheaded this advance.Technology stocks also experienced positive momentum.

Sectors Feeling the Pressure

Though, declines in consumer discretionary (-1%) and communication services (-1.2%) exerted downward pressure on the overall market. Meta Platforms was a notable laggard, closing down 2.7%.

Experts Weigh In on Market Sentiment

“the market is still trying to break out of the consolidation it’s been in as early December,” said Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley. “This week kicks off the retail portion of earnings season, but news out of Washington, especially on the tariff front, could continue to be a wild card for the markets.”

Steve Wyett, chief investment strategist at BOK Financial, offered a more optimistic outlook: “I think ther’s a not-zero chance that the federal Reserve reverses course next year as inflation becomes a 2026 story. That’s not being reflected in asset values at the present time. I’m more optimistic than I am pessimistic,but I think we also need to be realistic.”

Market Volatility Continues

The recent market volatility reflects the ongoing uncertainty surrounding global trade and inflation. Investors are closely watching inflation data, hoping for signs that it will continue to ease, paving the way for the Federal Reserve to lower interest rates.

Looking Ahead

The week ahead promises to be crucial for the markets, as companies begin to report their earnings. Additionally, any developments regarding trade tensions, notably in regard to potential reciprocal tariffs, will likely impact investor sentiment.

In the context of record stock surge amidst trade tensions and inflation concerns, how should investors best navigate perhaps mixed performance across different sectors?

Record Stock Surge Amid Trade Tensions & Inflation Concerns: An Expert Discussion

Archyde News Editor:

We’re here today with two distinguished guests to discuss the stock market’s recent record surge amidst ongoing global trade tensions and inflation concerns. Joining us are Longinus “Lon” P.ellar, Chief Investment Officer at Pellar & Sons Investment Management, and Dr. Seraphina “Sera” K.an, Economist and Senior Research Fellow at the Global Economic Forum.Welcome,Lon and Sera!

Lon P.ellar:

Thank you for having us. It’s always a pleasure to discuss the markets.

Dr. seraphina K.an:

Likewise. I’m eager to share my perspective on the recent developments.

Archyde News Editor:

Let’s dive right in. The S&P 500 closed at a new record high on February 13, 2025, despite concerns over trade and inflation.What’s driving this market rally, Lon?

lon P.ellar:

Well, there are several factors at play. First, we’re seeing strong corporate earnings, which boost investor confidence.Additionally, there’s growing optimism that the specter of a global recession might be fading, and that interest rates might stay lower for longer. lastly, we shouldn’t underestimate the impact of algorithmic trading – computers buying and selling in seconds can significantly impact the market.

Archyde News Editor:

Sera,how do you foresee inflation evolving in the coming months,and how might that impact the markets?

Dr. Seraphina K.an:

I believe we’re likely to see a moderation in inflation rates heading into the second half of the year. Supply chain disruptions are easing, and base effects from last year’s sharp price increases will come into play.Tho, I’m not expecting a rapidfall to the Fed’s 2% target just yet. For the markets, this means the Fed might maintain a dovish stance, but it’s not a given that we’ll see rate cuts anytime soon.

Archyde News Editor:

Lon, we’ve seen sectors like energy leading the charge, while others like consumer discretionary and dialog services lag behind.How do you recommend investors navigate this mixed landscape?

Lon P.ellar:

It’s crucial to stay diversified. While energy and tech have been performing strongly, that doesn’t mean they’ll continue to outpace the market indefinitely. I’d suggest focusing on fundamentals – look for undervalued stocks with strong earnings growth prospects. Also, consider sectors that could benefit from a shift in consumer spending or changes in policy, like healthcare or renewable energy.

Archyde News Editor:

Sera, if you could leave our readers with one thought on the current market situation, what woudl it be?

dr. Seraphina K.an:

I’d say,’Prepare for volatility,but don’t let it make you irrational.’ Markets will continue to react to news on trade and inflation, so it’s essential to stay informed and maintain a long-term perspective. Don’t fall prey to the temptation of ‘trying to time the market’ – consistent, disciplined investing is still the best strategy.