In an impressive comeback, the S&P 500 climbed by 1.6% on Friday, February 28th, as investors seemed to brush aside geopolitical tensions, effectively trimming down the index’s losses for February.
AES, an energy provider, led the charge upward with a robust outlook driven by the increasing demand for power in AI data centers. On a less positive note, Nvidia’s partner, NetApp, experienced a drop after missing revenue forecasts due to its slowing sales growth.
The major U.S. equity indexes saw a rally during the final hours of Friday’s trading, successfully closing higher despite oscillating between gains and losses for much of February’s concluding session.
Early in the day, stocks gained traction after a report indicated alleviating inflation pressures in January. However, the rally faced a stumble following a tense meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskyy, which raised concerns about a mineral rights deal potentially affecting a ceasefire with Russia. Ultimately, the market indexes found their footing and surged in late trading.
By the last trading day of February, the S&P 500 had managed a 1.6% rise, though it was still down 1.4% over the entire month. The Nasdaq also saw a 1.6% increase but ended the month with a decline of about 4%. Similarly, the Dow Jones Industrial Average gained over 600 points, marking a 1.4% rise, securing a positive week, yet it wasn’t enough to erase its monthly dip.
AES was a star performer in the S&P 500, jumping an impressive 11.7% thanks to better-than-expected quarterly earnings and a positive profit outlook for the year. The energy company attributed its growth to the rising demand from AI data centers and manufacturing plants. It also highlighted efforts to mitigate tariff risks by moving its supply chain for solar panels and batteries onshore.
Shares of Edison International climbed 6% after announcing that California’s Wildfire Insurance Fund could provide some financial protection against the aftermath of the recent deadly wildfires.
Erie Indemnity also climbed, gaining 5.7% as strong operating and investment income propelled its earnings past expectations. The company saw a rise in management fee revenue from issuing and renewing policies, although commission expenses grew as well.
Monster Beverage saw a 5.3% uptick in share prices after slightly surpassing revenue growth projections. The company’s leaders voiced confidence in its ability to compete with Celsius Holdings, a rival that recently acquired Alani Nu, a fast-growing competitor.
However, NetApp led the decliners in the S&P 500, dropping 15.6% following disappointing revenue results and a dim outlook, attributed to decelerating sales growth despite its partnership with Nvidia.
HP saw a 6.8% decline due to concerns over potential Chinese tariffs, which the computer company expects will drive up costs and contribute to a less optimistic earnings forecast. Nevertheless, HP plans to have most of its U.S. products manufactured outside China by year-end to diversify its supply chain.
Dell also endured a 4.7% drop, as its quarterly and full-year sales outlook fell short of expectations. Despite this, the computer maker reported better-than-expected earnings fuelled by robust server revenue, largely driven by AI demand. Some analysts still see strong fundamentals within the company, despite Friday’s otherwise tech sector recovery.
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