S&P 500 Futures Gain on Inflation Data, But Nvidia and Dell Extend Losses

S&P 500 Futures Edge Higher on Inflation Data, But Worst Week of 2025 Looms

Stock futures rose on Friday as traders digested the latest inflation data, but the major indexes remained on track for a tough week and month. S&P 500 futures climbed 0.3%, while Dow Jones Industrial Average futures advanced 224 points, or 0.5%. Nasdaq-100 futures increased 0.2%.

The Commerce Department’s personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, matched expectations. The PCE index rose 0.3% in January and 2.5% year-over-year. Core PCE, which excludes food and energy, also gained 0.3% month-over-month and 2.6% annually, aligning with Dow Jones consensus estimates.

However, market sentiment remained fragile as investors navigated concerns over potential tariffs from President Donald Trump and mixed economic signals. Thursday’s sharp 8.5% drop in Nvidia shares following disappointing gross margin figures further weighed on risk appetite, with Nvidia down another 1.8% in premarket trading Friday.

Which Index Is Getting Hit the Hardest?

The Nasdaq Composite is the clear underperformer this month, down about 5.5% in February and 5% this week alone. The tech-heavy index is on track for its worst month since September 2023.

The S&P 500 has fallen 2.5% this week and roughly 3% in February, eyeing its biggest weekly drop since September 2024 and its worst month since April 2024. Meanwhile, the Dow has fared relatively better, down just 0.4% this week and nearly 3% for the month.

How Are Individual Stocks Reacting?

Nvidia shares extended losses with a 2% premarket decline, as concerns over shrinking margins overshadowed a narrow revenue beat. China-related stocks also struggled after Beijing warned of retaliation against Trump’s proposed 10% tariff on Chinese goods. Alibaba shed over 4%, while PDD Holdings and Nio dropped nearly 4%. Li Auto slid about 5%.

Dell Technologies fell nearly 7% after fourth-quarter revenue missed estimates, while Autodesk rose 1% on stronger-than-expected earnings despite announcing layoffs. Rocket Lab plummeted over 16% following weak guidance, and Duolingo dropped 9% after its EBITDA forecast missed expectations.

HP shares slid 3% on soft guidance, NetApp lost 15% on disappointing revenue, and Logitech International fell more than 3% following a Bank of America downgrade. Walgreens slipped 3% after Deutsche Bank downgraded the stock to sell.

What’s Next for the Market?

With February nearing an end, traders are bracing for a volatile close. The focus will shift to upcoming economic data, including next week’s ISM manufacturing data and the February jobs report, which could offer fresh insights into the Federal Reserve’s next move.

Ongoing geopolitical tensions, particularly around U.S.-China trade relations, remain a wildcard for market stability. For now, investors appear to be positioning cautiously, seeking more clarity on inflation, potential tariffs, and consumer health.

More Information in our Economic Calendar.