Market Overview
The stock market closed with losses across the board. Major indices ended the session with declines ranging from 0.6% to 1.7%. Despite the downturn, gains from the previous two sessions for the S&P 500 (-1.1%) and Nasdaq Composite (-1.7%) have not been fully erased. Currently, the S&P 500 and Nasdaq Composite are still up by 1.7% and 1.2%, respectively, compared to Thursday's close.
Mega Cap Stocks Performance
- Tesla (TSLA, Financial): $225.31, down $12.70, or 5.3%
- NVIDIA (NVDA, Financial): $115.52, down $4.00, or 3.4%
- Meta Platforms (META): $582.36, down $22.54, or 3.7%
- Alphabet (GOOG): $162.67, down $3.90, or 2.3%
Investors were digesting headlines related to NVIDIA amid its GTC event, but the news had little impact on its shares. Meanwhile, Alphabet announced a $32 billion cash acquisition of Wiz, Inc., a cloud security platform company.
Geopolitical Factors
Geopolitical tensions contributed to today's market downturn, though commodities and Treasuries did not reflect this unrest. Treasuries, typically a safe haven during such times, saw the 10-year yield drop three basis points to 4.28%, and the 2-year yield drop one basis point to 4.04%. Oil prices, which often rise with Middle East tensions due to supply concerns, saw WTI crude oil futures fall 1.2% to $66.78 per barrel.
President Trump's call with Russian President Putin received a muted response from stocks and bonds. White House Press Secretary Karoline Leavitt stated that the leaders agreed on a ceasefire and peace negotiations.
Economic Data
Today's economic data was mixed. February housing starts increased to 1.501 million, surpassing the consensus of 1.385 million, with a notable 18.3% rise in the South region. Building permits were at 1.456 million, slightly above the consensus of 1.450 million.
February export prices rose 0.1%, and import prices increased 0.4%. Industrial production saw a 0.7% increase, with a significant 8.5% jump in motor vehicles and parts, likely due to tariff frontrunning. Motor vehicle assemblies rose 11.5% month-over-month to a seasonally adjusted annual rate of 10.35 million.
Upcoming Data
- 7:00 ET: Weekly MBA Mortgage Index (prior 11.2%)
- 10:30 ET: Weekly crude oil inventories (prior +1.45 million)
- 16:00 ET: January Net Long-Term TIC Flows (prior $72.0 billion)
- March FOMC decision at 2:00 ET
International Markets
European markets showed gains with the DAX up 1.0%, FTSE up 0.3%, and CAC up 0.5%. In Asia, the Nikkei rose 1.2%, Hang Seng increased 2.5%, and Shanghai inched up 0.1%.
Guru Stock Picks
Carl Icahn has made the following transactions:
- Add in CVI by 0.13%
Today's News
IBM (IBM, Financial) announced new collaborations with NVIDIA (NVDA, Financial) to enhance its AI capabilities, planning integrations based on NVIDIA's AI Data Platform. This partnership aims to scale generative AI workloads and introduce new consulting capabilities, leveraging open technologies for improved data management and security. In response, NVIDIA shares saw a slight increase of 0.12% in after-hours trading, while IBM shares rose by 0.10%.
Alphabet (GOOGL, Financial) made headlines with its all-cash $32 billion acquisition of cybersecurity startup Wiz, marking its largest acquisition to date. The deal is set to bolster Google Cloud's security offerings, with Wiz continuing to operate across major cloud platforms. Following the announcement, shares of cybersecurity companies like CrowdStrike (CRWD) and Palo Alto Networks (PANW) saw minor declines, while Alphabet shares increased slightly in premarket trading.
Nvidia (NVDA, Financial) CEO Jensen Huang highlighted the transformative impact of AI at the company's GTC event, emphasizing the need for increased computing power with the rise of agentic AI. Despite the positive outlook, Nvidia shares dropped 3% amid broader market declines in semiconductor stocks, including AMD (AMD) and Micron Technology (MU).
BYD Company (OTCPK:BYDDF) introduced its Super e-Platform, enabling electric vehicles to charge at speeds comparable to gasoline refueling, providing up to 400 kilometers of range in just five minutes. This innovation aims to alleviate range anxiety and strengthen BYD's position in the EV market.
Regenxbio (RGNX, Financial) surged ~11% after Sarepta Therapeutics (SRPT, Financial) disclosed a mortality linked to its gene therapy product. This development could accelerate the enrollment for Regenxbio's AFFINITY DUCHENNE trial, potentially leading to an accelerated approval for its DMD candidate.
Super Micro Computer (SMCI, Financial) regained its position as the most shorted S&P 500 stock, with short interest rising to 21.34% of its shares. Despite recent volatility, SMCI's shares have risen significantly this year, making it one of the top performers in the index.
Affirm Holdings (AFRM, Financial) saw its stock slump after Walmart (WMT) announced Klarna as its exclusive provider for installment loans, impacting Affirm's integration volumes. However, analysts suggest the decline is overdone, with potential for Affirm to recoup losses through other offerings.
Pfizer (PFE) is planning to sell its remaining 7.3% stake in Haleon (HLN, Financial), continuing its divestment from the consumer healthcare company it co-founded with GSK. This move follows Pfizer's previous sale of shares in January.
Medtronic (MDT, Financial) faced a serious product recall by the FDA for its Pipeline Vantage 027 embolization devices, used to treat intracranial aneurysms. The recall was prompted by reports of device failures leading to serious health risks.
Meta Platforms (META) shares fell 4% despite announcing that its Llama AI models have surpassed 1 billion downloads. The company continues to innovate with its upcoming Llama 4 models, aiming to drive further advancements in AI.
GuruFocus Stock Analysis
- Nvidia Unveils Expansive AI Roadmap at GTC 2025 by Faizan Farooque
- FTC Sues Click Profit Over Alleged Amazon Investment Scam by Muslim Farooque
- Meta's Llama AI Hits 1B Downloads-But Shares Still Slide by Muslim Farooque
- Nvidia Unveils Next-Gen AI Chips and Big Partnerships at GTC 2025 by Muslim Farooque
- JPMorgan Identifies Meta, Spotify as Top Internet Stocks Amid Economic Uncertainty by Faizan Farooque
