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Markets Update: Wall Street experienced modest gains on Friday following U.S. inflation data that met expectations, reinforcing predictions of two Federal Reserve rate cuts this year. Meanwhile, oil prices were poised for their first monthly decline since November.
Global Markets Roundup: 28 Feb 2025
Global equities declined, with the MSCI world stock index down 0.09% at 856.46, and European markets also retreating. The recent rally in cryptocurrencies lost momentum, with Bitcoin falling below $80,000.
The U.S. personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, showed a slight decline to 2.5% in January from 2.6% in December. Core PCE, which excludes food and energy, eased to 2.6% from an upwardly revised 2.9%. Both figures met economists' expectations, suggesting inflation remains persistent but is trending downward.
Despite recent soft economic data, markets continue to price in 61 basis points of rate cuts for 2025, with the first expected by July, according to LSEG data.
On Wall Street, the Dow Jones Industrial Average rose 212.48 points (0.49%) to 43,449.49, the S&P 500 climbed 28.41 points (0.47%) to 5,889.15, and the Nasdaq Composite gained 101.97 points (0.55%) to 18,646.30. In Europe, the STOXX 600 declined by 0.16%, while the FTSEurofirst 300 dropped 3.63 points (0.16%).
In Asia, markets followed the global downtrend. Japan’s Nikkei fell by 1,100.67 points (2.88%) to 37,155.50, while MSCI’s Asia-Pacific index decreased by 2.45% to 576.86.
U.S. Treasury yields fell after the inflation data, with the 10-year yield dropping 3.5 basis points to 4.252% and the 2-year yield down 3.3 basis points to 4.047%. Concerns over escalating trade tensions weighed on market sentiment. President Donald Trump confirmed that 25% tariffs on imports from Canada and Mexico will take effect on March 4—not April 2 as previously suggested. He also announced an additional 10% duty on Chinese goods and proposed 25% tariffs on European Union imports.
The dollar index DXY slipped 0.06% to 107.29, reflecting market unease over potential economic disruptions. Bitcoin BTCUSD fell below $80,000 for the first time in three months, decreasing by 0.55% to $83,827.16.
Spot gold declined by 1.22% to $2,841.50 per ounce, while oil prices were on track for their first monthly loss since November.
The most-active corn contract on the CBOT fell 9.25 cents to $4.71-3/4 reaching its lowest level since January 10. CBOT soybeans declined 9 cents to $10.28-1/4 per bushel, registering their lowest point since February 13. Wheat decreased by 1.75 cents to $5.60-3/4 per bushel.
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team