The S&P 500 index shed 1% last week, resulting in a February drop of 1.4%, which erased much of the benchmark’s January gain.
The index, which fell in three of February’s four weeks, is now up 1.2% in 2025.
Data released on Friday showed consumer spending unexpectedly declined last month, even as the Federal Reserve’s preferred inflation metric decelerated on an annual basis.
Concerns about the impacts of tariffs imposed or threatened by US President Donald Trump have weighed on the market. Trump said Thursday that tariffs scheduled for March 4 will proceed as planned, including an additional 10% levy on Chinese items. China said Friday it would counter any additional tariffs imposed by the US.
A tense exchange on Friday between Trump and Ukraine President Volodymyr Zelenskyy added to investor worries.
The technology sector had the largest percentage drop of the week, falling 4%, followed by a 2.6% decline in communication services and a 2.1% slip in consumer discretionary. Utilities also fell.
On the upside, financials rose 2.8%, followed by a 2.1% gain in real estate and a 1.7% climb in health care. Consumer staples, industrials, materials and energy also edged higher.
This week, Broadcom (AVGO), Costco Wholesale (COST) and CrowdStrike Holdings (CRWD) are among the companies expected to release quarterly results.
In economic data, investors will be focused on February jobs numbers, with ADP’s employment report expected on Wednesday and the government’s nonfarm payrolls and unemployment rate due on Friday.
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