The Federal Reserve's interest rate decision, a packed earnings docket, and a looming partial government shutdown made for a busy end to February. The week kicked off with more tariff threats, while Democratic Senators refused to clear a $1.2 trillion package if it included Homeland Security funding, following the killing of Alex Pretti. The S&P 500 Index (SPX) enjoyed a record close as traders anticipated Microsoft (MSFT) and Meta Platforms (META) earnings, while the Dow Jones Industrial Average (DJI) shed triple digits as UnitedHealth's (UNH) report weighed.
The SPX cooled on Wednesday after the central bank kept rates steady in the 3.5% to 3.75% range, pulling back from its peak above 7,000. Microsoft's warning of slowing cloud growth left Big Tech rattled, triggering a triple-digit drop for the Nasdaq Composite (IXIC) on Thursday as the Senate failed to advance a government funding package. Stocks eyed more losses on Friday following hotter-than-expected inflation data, despite Apple (AAPL) earnings and Kevin Warsh's nomination to Fed chair. Though the DJI was pacing for a third-straight weekly loss on Friday afternoon, it was still on track for its ninth-straight monthly win, while the Nasdaq and S&P 500 headed for monthly gains as well.
Busy Week for Tech
Earnings results from Meta Platforms (META) and Microsoft were not the only major tech headlines his week. In fact, AppLovin (APP) secured an upgrade, and quantum computing giant IonQ (IONQ) bought semiconductor company SkyWater Technology (SKYT) in a deal valued at $1.8 billion. Meta Platforms also penned a multi-year deal with Corning (GLOW) to support AI data-center expansion in the U.S, and Texas Instruments (TXN) issued a strong forecast.
Micron Technology (MU) shares fell after Nvidia (NVDA) solidified a supply deal with Samsung, with Pinterest (PINS) shares also gapping lower following AI-driven layoffs. Seagate Technology (STX) stock broke records, while Apple (AAPL) and Tesla (TSLA) shares brushed off quarterly wins.
The Thick of Earnings Season
Big Tech took center stage, but several other big names stepped into the earnings confessional as well. UNH gapped lower after its mixed fourth-quarter report, while General Motors (GM) stock enjoyed post-earnings records. American Airlines (AAL) announced a top- and bottom-line miss, and AT&T (T) issued an upbeat outlook. A beat-and-raise lifted Nextpower (NXT), and Caterpillar (CAT) enjoyed a quarterly win of its own as American Express (AXP) shared a profit miss.
February Brings Jobs Data, More Earnings
Jobs data headlines the first week of February, with plenty of earnings on tap too. Some of the most notable reports will come from Alphabet (GOOGL), Amazon.com (AMZN), Eli Lilly (LLY), PayPal (PYPL), PepsiCo (PEP), Pfizer (PFE), Shopify (SHOP), Snap (SNAP), Strategy (MSTR), Take-Two Interactive (TTWO), Tapestry (TPR), Tyson Foods (TSN), Qualcomm (QCOM), Uber Technologies (UBER), and Walt Disney (DIS). It's best not to ignore small-cap stocks, as the Russell 2000 Index (RUT) could extend its rally in the short term.
