Fri Feb 28 15:20:00 UTC 2025: ## US Stocks Inch Higher Despite Tariff Threats and Mixed Economic Data

**New York, NY** – US stocks experienced a modest rebound on Friday, closing slightly higher despite ongoing uncertainties surrounding trade policy and mixed economic signals. The S&P 500 gained 0.5%, the Nasdaq Composite rose 0.6%, recovering from Thursday’s Nvidia-led sell-off, and the Dow Jones Industrial Average added a modest 0.2%.

However, these gains come against a backdrop of significant weekly and monthly losses. The Nasdaq is on track for a more than 5% February decline, while the S&P 500 and Dow are poised for roughly 3% drops. The S&P 500 has seen three days this week with declines exceeding 1%.

Easing some market anxieties, the January Personal Consumption Expenditures (PCE) index—the Federal Reserve’s preferred inflation gauge—showed core inflation cooling to 2.6%, meeting expectations. This followed recent data that fueled concerns about economic slowdown and rising inflation. However, consumer spending unexpectedly fell 0.2% last month, contrasting with forecasts and December’s growth.

Offsetting this positive inflation news, President Trump’s renewed tariff threats on Chinese imports, along with planned tariffs on Mexico, Canada, and the EU, injected fresh uncertainty into the market. China vowed to retaliate, further fueling investor concerns. These trade tensions particularly weighed on Big Tech prospects.

The cryptocurrency market also saw further declines, with Bitcoin falling 7% to its lowest level since November, down 25% from its all-time high.

Individual company news contributed to the market’s volatility. Redfin stock plunged 13% after reporting disappointing fourth-quarter earnings and a weak outlook. Conversely, Vital Farms, an organic egg producer, saw its shares rise as much as 5% on news that egg shortages, driven by avian flu, are expected to ease later in 2025, despite current supply constraints and record-high egg prices.

Despite Friday’s modest gains, the overall market sentiment remains cautious due to the lingering impact of President Trump’s trade policies and recent economic data. While the PCE report provided some relief on inflation, the broader economic outlook and trade uncertainty continue to overshadow market performance.

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