By STAN CHOE
Updated 12:03 AM GMT+3, February 25, 2025
NEW YORK (AP) — U.S. stocks edged lower on Monday after enduring significant losses the previous week. Trading was mixed across the major indices: the S&P 500 fell by 0.5% after oscillating between minor gains and setbacks, the Dow Jones Industrial Average inched up by 0.1%, and the Nasdaq Composite slid 1.2%. Nvidia, in particular, underperformed ahead of its forthcoming profit report, while Berkshire Hathaway recorded a 5% jump after reporting strong operating profit growth, albeit with a note that few stocks now seem attractively priced. Meanwhile, Treasury yields eased ahead of anticipated updates on consumer confidence and inflation.
Earlier in the session, the S&P 500 experienced only a marginal drop of 0.1% during afternoon trading—a modest recovery after its 1.7% fall last Friday, which was spurred by several weaker-than-expected economic indicators. The Dow gained 146 points (roughly 0.3%) as the trading day neared its end, while the Nasdaq dipped by 0.7%.
Berkshire Hathaway, owner of Geico, BNSF, and other major businesses, saw a notable rebound, bolstered by its latest quarterly report showing a substantial increase in operating profits. Over the weekend, the company highlighted that it is sitting on $334.2 billion in unused cash—a signal, some suggest, that even a savvy investor like Warren Buffett finds few attractive buying opportunities in what many critics consider an overpriced market.
In corporate news, Starbucks shares rose 1.5% after the company announced plans to cut 1,100 corporate positions, with additional roles expected to remain unfilled as new CEO Brian Niccol moves to streamline operations. In contrast, Domino’s Pizza shares dropped by 1.8% after its quarterly results narrowly missed analyst expectations; while its international segment shined, sales from its U.S. corporate-owned stores faltered.
Earnings for many large U.S. companies in the last quarter of 2024 surpassed expectations, contributing to the S&P 500’s record performance before the subsequent slide last week. Although the flurry of earnings reports is expected to slow this week, several key updates are on the horizon. Among these, all eyes are on Nvidia, which is set to release its first profit report after a Chinese competitor, DeepSeek, claimed to develop a competitive large language model without relying on premium chips—a move that challenges long-held assumptions about the industry’s spending on Nvidia’s technology and its surrounding ecosystem.
Market strategist Anthony Saglimbene from Ameriprise remarked, “There is very little room for Nvidia to fall short of profit expectations this year, given its leadership in AI, high valuations, and the entry of new competitors that could, over time, erode its dominance.”
Other major companies scheduled to report earnings this week include Home Depot on Tuesday and Salesforce on Wednesday. Investors are also awaiting new data on consumer sentiment and inflation—key issues following last week’s market downturn.
Recent reports indicate a decline in consumer confidence as inflation expectations worsen, influenced in part by tariffs and other policies. Persistently high inflation could hamper the Federal Reserve’s ability to lower interest rates further, a tool that has been instrumental in stimulating the economy. After significant rate cuts at the end of last year, the Fed has maintained its primary rate, with officials hinting during their January meeting that rates might remain unchanged for some time amid concerns over policy impacts such as tariffs and mass deportations potentially fueling inflation.
In the bond market, the 10-year Treasury yield slipped slightly from 4.43% to 4.39% late Friday.
On the international front, German shares inched higher, with the DAX climbing 0.6% following an electoral win by political conservatives amid broader concerns over Europe’s largest economy. Conversely, stock indexes in much of Europe and Asia were mixed—France’s CAC 40 fell by 0.8%, Hong Kong’s Hang Seng declined by 0.6%, and Japan’s market remained closed for a holiday.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.
