Conner Paffrath
Feb 20, 2023
Between February 20 and February 27, financial markets experienced notable volatility due to trade rumors.
The S&P 500, which had hit record highs earlier in the month, faced declines, with the Nasdaq seeing its worst trading day in a month on February 27. Investor sentiment was rattled by President Trump's announcement of a 25% tariff on European imports, escalating trade tensions. Meanwhile, Nvidia's stock tumbled despite strong earnings, dragging major indices lower. U.S. retail sales showed a modest recovery, rising 0.2% after a sharp 1.2% decline in January, signaling cautious consumer spending amid economic uncertainty.
In addition to market movements, economic activism gained traction. On February 28, a consumer-driven "Economic Blackout" boycott took place, protesting corporate practices and diversity policy rollbacks. The mix of trade policies, corporate earnings reports, and consumer activism contributed to heightened market uncertainty, leading to increased caution among investors. This period highlighted the sensitivity of financial markets to both macroeconomic trends and political developments.