U.S. stocks log a second straight weekly drop as tariff uncertainty and Fed expectations weigh on sentiment
Major indexes retreated in the week ahead of the Presidents' Day holiday, with the Nasdaq extending its slide as investors weighed tariff legal risks and a busy stretch of economic and earnings catalysts.
U.S. equities finished the week lower, extending a recent pullback as investors navigated policy uncertainty and a packed calendar of market-moving catalysts. Investor's Business Daily reported the S&P 500 fell 1.4% for the week while the Dow Jones Industrial Average slipped 1.2%. The Nasdaq dropped 2.1%, marking its fifth consecutive weekly decline.
Why markets care: Weekly declines can signal tightening financial conditions and shifting risk appetite — especially when led by tech-heavy benchmarks like the Nasdaq. Traders often look to upcoming data releases and central bank communications to determine whether a pullback is a pause, a rotation, or the start of a deeper drawdown.
Tariffs as a wildcard: The IBD outlook highlighted uncertainty tied to the Supreme Court's pending review of the constitutionality of a large set of tariffs. Markets have been sensitive to tariff headlines because they can influence corporate costs, consumer prices and global growth expectations.
Catalysts ahead: The report pointed to key items investors are watching in the coming days, including Federal Reserve minutes and major earnings such as Walmart.
What to watch next: Beyond the immediate event risk, investors will monitor whether selling pressure broadens, how leadership shifts across sectors, and whether economic data supports a scenario of moderating inflation without a sharp slowdown in growth.
Source: Investor's Business Daily