The 10-year Treasury yield topped 4.65% this week
Markets were on edge this week as hotter-than-expected inflation data stoked fears that the Federal Reserve could maintain interest rates elevated for longer than expected, pushing the 10-year Treasury yield past 4.65%. Despite inflation jitters, mega-cap tech stocks provided some stability, while Fed Chair Jerome Powell's cautious stance on rate cuts kept investors wary, leading to sideways trading and mixed performance.
By week's end markets shook off inflation and tariff worries, with President Donald Trump signing a memorandum to explore reciprocal tariffs, but ultimately holding off on immediate action. Traders also digested the latest retail sales data, with the Dow Jones Industrial Average (DJI), S&P Index (SPX), and the Nasdaq Composite Index (IXIC) on track for weekly gains.
Earnings: Winners & Losers This Week
Traders had plenty of earnings reports to digest. Blue-chip fast food giant McDonald's (MCD) shared a big quarterly beat, while beverage powerhouse Coca-Cola (KO) also impressed -- the latter seeing tons of post-earnings options activity. Chip stocks were a mixed bag, with On Semiconductor (ON) and Super Micro Computer (SMCI) moving in opposite directions following their reports.
Elsewhere, e-commerce concern Shopify (SHOP) saw its top-line beat overshadowed by a gloomy 2025 forecast, while Gilead Sciences (GILD) offered more sunny guidance after a strong fourth quarter. Plus, these three other major stocks saw impressive post-earnings rallies.
Stocks Making Outsized Moves
Dollar Tree (DLTR) is testing a historically bullish trendline, while Tesla (TSLA) sits at a key level as traders assess CEO Elon Musk's new government role. Nucor (NUE) and U.S. Steel (X) rose sharply after Trump’s proposed 25% steel tariffs, while gold miners also shined. Barrick Gold (GOLD) jumped on strong earnings and a $1 billion buyback, and Newmont (NEM) readied for earnings.
The artificial intelligence (AI) sector stayed hot, with Tempus AI (TEM), BigBear.ai (BBAI), and SoundHound AI (SOUN) in focus. In the energy sector, Phillips 66 (PSX) announced a $2.5 billion stake from Elliott Investment Management, and BP (BP) shrug off a quarterly beat.
What's on the Radar Next Week
Markets will be closed on Monday to observe Presidents’ Day, but the week ahead is packed with events. Investors will parse the Federal Open Market Committee's (FOMC) meeting minutes for rate policy insights, and unpack another wave of earnings reports. Meanwhile, Wall Street is keeping an eye a crucial stock market indicator and what SPX volatility signals for the broader market.