US stocks post weekly gains despite volatility amid trade war pressure

US stocks closed flat on Friday, posting weekly gains despite volatility amid trade war pressure after President Donald Trump froze new tariffs.

The Dow Jones Industrial Average lost more than 166 points, or 0.4%, at the close.

The S&P 500 lost about 0.01% on Valentine’s Day, at 6,114.63 points.

The Nasdaq Composite rose 0.41% to 20,026.77 points, helped by a surge in Nvidia shares.

The US president signed a memorandum on Thursday on a plan to impose tariffs on goods from countries that impose tariffs on the United States. Products. The lack of immediate tariffs boosted sentiment, sending stock markets higher as investors also piled into technology stocks.

Treasury yields fell for a second day after data showed U.S. retail sales fell more than expected in January, falling 0.9% last month after a revised 0.7% increase in December. The 10-year yield fell by about seven basis points to last trade at 4.44%.

Shares of Nvidia and Apple rose, while Microsoft and Tesla fell.

Traders also appeared to be relieved by the release of the producer price index for January, in addition to the consumer price index report released earlier this week.

The producer price index data suggests inflation is accelerating again, reinforcing market expectations that the U.S. Federal Reserve will not cut interest rates until the second half of the year.

The personal consumption expenditures price index, due later this month, is the Fed’s preferred inflation gauge.

Fed Chairman Jerome Powell, during his second congressional hearing last week, stressed that the central bank is in no rush to cut rates.

All major indexes are set to end the week higher. The S&P 500 and Dow are expected to gain about 1.5% and 0.9%, respectively. The Nasdaq is up 2.2% this week.

The Magnificent Seven’s contribution to earnings growth is “waning”

The influence of the Magnificent Seven on earnings growth among U.S.-based companies is diminishing by the fourth quarter, JPMorgan said.

Earnings growth for the Magnificent Seven and the rest of the S&P 500 fell to 20% in the fourth quarter, the narrowest margin since the first quarter of 2023, when it reached 10%.

“While still an important driver of U.S. earnings growth, the contribution of the Magnificent Seven is diminishing, with some of the group underperforming this quarter,” analyst Mislav Matejka wrote.

“The spread between the S&P 500’s earnings growth and the Big Seven has fallen to its lowest level in the past seven quarters,” he continued.

Valentine’s Day looms over the market

Historically, the S&P 500 turns green, not red, on Valentine’s Day, due to buying.

But in all of the past Valentine’s Day trading sessions, the broad market index has only fallen into negative territory seven times, according to Ryan Detrick of Carson Group. The average gain is about 0.28%, with a positive rate of 63.2%.

However, investors tend to “swipe left” on the market after Valentine’s Day. The second half of February is typically a weak period for the S&P 500.

The U.S. holiday shopping season was expected to set a new record this year, with Americans expected to spend a whopping $27.5 billion on gifts and special offers.

Airbnb shares surge

The apartment rental company’s stock surged more than 14% after the travel company’s fourth-quarter numbers beat expectations. Airbnb earned 73 cents per share on revenue of $2.48 billion.

Analysts surveyed by LSEG had expected earnings of 58 cents per share on revenue of $2.42 billion.

Dell shares jump

Technology company Dell shares jumped 6% after a report of a $5 billion deal for artificial intelligence servers for billionaire Elon Musk’s xAI.

Coinbase shares surge

Shares of the cryptocurrency company fell 6.51% during Wall Street trading despite the company reporting fourth-quarter earnings that beat expectations.

US retail sales shrink at a faster-than-expected pace

The US Census Bureau released negative retail sales data for January, with sales contracting at a deeper pace than markets had expected.

According to data released on Friday, U.S. retail sales contracted 0.9% in January, while markets had expected retail sales to shrink by just 0.2%. The previous reading was for a 0.4% increase in December, which was revised higher to a 0.7% increase.

Moderna shares rebound

Shares of biotech company Moderna fell 5.4% after reporting a larger-than-expected loss per share in the fourth quarter. Revenue also beat Street expectations. But it rebounded shortly after Wall Street opened.

GameStop shares extend gains

Shares of the video game company surged 7.9% after sources familiar with the matter told CNBC that the video game retailer is considering investing in bitcoin and other cryptocurrencies.