Conner Paffrath
Feb 27, 2025
Between February 20 and February 27, the U.S. stock market saw notable fluctuations influenced by corporate earnings reports
On February 20, major indices declined after reaching record highs earlier in the week. The Dow Jones Industrial Average fell 1%, the S&P 500 decreased 0.4%, and the Nasdaq Composite dropped 0.5%. This downturn was partly due to Walmart's shares plummeting 6.5% following a disappointing outlook, raising concerns about consumer spending.
The market faced further volatility on February 27, with the Nasdaq Composite experiencing its largest one-day drop in a month, plunging 2.8%. The S&P 500 and Dow Jones also declined by 1.6% and 0.5%, respectively. This sell-off was driven by a sharp decline in Nvidia's stock, which fell 8.5% despite strong earnings, reflecting investor concerns over the sustainability of high valuations in the tech sector. Additionally, President Trump's announcement of impending tariffs on imports from Mexico and Canada heightened fears of a trade war, contributing to market uncertainty.