From Record Highs to a 700-Point Drop — What Just Happened?

S&P 500 Hits a New Peak, Fed Holds Its Ground, and the Dow Takes a Nosedive — Here’s What Moved the Markets This Week.

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Market Mastery Digest
February 24, 2025

Markets on a Roller Coaster — Where Do We Go from Here?

Hello, Market Mastery crew! 👋

There we go… another wild ride.

The S&P 500 hit an all-time high, jobless claims rise more than expected, and the Fed drop some cautious signals in their latest meeting minutes.

But just when things looked strong, Friday’s sell-off wiped out gains, with the Dow plunging over 700 points — its worst day of 2025 so far.

So, what drove the markets this week?

Let’s break it all down, fast and simple. 🚀

The Fed’s January meeting minutes came out this week.

And the message was clear: they’re still worried about inflation and aren’t ready to rush into rate cuts.

While investors have been hoping for easier monetary policy, the Fed isn’t making any promises just yet.

Translation? The central bank is in wait-and-see mode before making its next move.

Midweek, the S&P 500 reached a record 6,144.15, riding high on tech and energy stock gains.

But even with markets flying, investors were keeping an eye on trade policies and inflation risks — and it turned out they were right to be cautious.

The labor market showed signs of softening, as jobless claims jumped to 219,000, higher than expected.

While not a major shock, it raised concerns that the job market might not be as strong as it seemed — something the Fed is definitely watching.

After a strong week, markets tumbled on Friday, with the Dow dropping over 700 points, marking its worst day of the year.

Investors hit the sell button as fears of slowing economic growth resurfaced, reminding everyone that this market still has some major uncertainties ahead.

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Big Earnings on Deck

Heavyweights like Nvidia, Home Depot, Lowe’s, Salesforce, Stellantis, and Dell are set to report.

Their results will give us a clearer picture of corporate strength in this economy.

Consumer Confidence Data

How do everyday consumers feel about the economy?

We’ll find out soon, and this could shape market sentiment in the coming weeks.

GDP Update

We’re getting revised GDP figures — a key signal of where economic growth is really heading.

Inflation Watch

The PCE Price Index, the Fed’s favorite inflation gauge, is coming up.

Any surprises here could shake rate expectations.

This week was a perfect reminder that markets don’t move in straight lines.

We had record highs, worrying economic signals, and a huge Friday sell-off all in just a few days.

The coming week brings key economic data and major earnings reports, which could set the tone for what’s next.

Stay informed, stay sharp, and keep playing the long game.

We’ll be back soon with more insights! 🚀