[New York Stock Market] Mixed Close as Investor Sentiment Weakens Amid Concerns Over US Economic Downturn...

Economic Uncertainty Deepens Amid Weak Consumer Confidence Index
Market Raises Doubts About U.S. Strengths: Consumer and Labor Sectors
Tesla's Market Capitalization Falls Below $1 Trillion

Major indices on the U.S. New York Stock Exchange closed mixed. Concerns over a potential economic downturn weakened investor sentiment amid declining consumer indicators.

On the 25th (local time) in the New York market, the tech-heavy Nasdaq index closed at 19,026.39, down 260.54 points (-1.35%) from the previous session. The large-cap S&P 500 index ended the day at 5,955.25, down 28.00 points (-0.47%), marking its fourth consecutive day of decline. The blue-chip Dow Jones Industrial Average (Dow) rose slightly by 159.76 points (0.37%) to 43,620.97, closing with a narrow gain.

The market appeared unsettled as economic uncertainty heightened following disappointing consumer confidence data. According to the private research organization, the U.S. Conference Board (CB), the U.S. Consumer Confidence Index for February was recorded at 98.3, significantly below the Dow Jones forecast of 102.3, and down 7 points from the previous month. This represents the largest monthly drop since August 2021. The expectations index for future economic conditions stood at 72.9, below the recession risk threshold of 80. This economic uncertainty, combined with concerns over President Trump's tariff policies, cooled investor sentiment.

Additionally, CNBC analyzed that recent weak manufacturing and retail sales indices, along with cautious earnings forecasts from Walmart, the largest U.S. retailer, further dampened investor sentiment.

Ross Mayfield, an investment strategy analyst at Baird Private Wealth Management, commented, "Doubts have been raised about consumers and the labor market, which have been considered strengths of the U.S. economy in recent years."

Stocks of major companies that had been leading the rally continued to underperform. AI defense stock Palantir fell another 3%, bringing its weekly decline to nearly 13%. Super Micro Computer’s stock plunged 11.76% on the day its deadline to submit last year’s financial report expired. Electric vehicle manufacturer Tesla dropped 8.38%, causing its market capitalization to fall below $1 trillion.

Nvidia, which will report its fiscal 2025 fourth-quarter results (November to January) after the market close on the 26th, saw its shares fall 2.80% amid growing caution. The Wall Street Journal noted that investors are adjusting their investment strategies regarding AI-related stocks.

Among the large tech group known as the "Magnificent 7" (M7), only Amazon (0.04%) posted a slight gain, while Nvidia, Microsoft (-1.51%), Apple (-0.02%), Alphabet (Google’s parent company) (-2.14%), Tesla, and Meta (Facebook’s parent company) (-1.59%) declined.

As investors favored safe-haven assets, the yield on the U.S. 10-year Treasury note fell to 4.291%, marking its lowest level since December of last year.