MARKET SNAPSHOT

U.S. stocks ended mixed, with technology shares lagging. Yields on U.S. government debt extended their losses amid worries about the outlook for economic growth against a backdrop of sticky inflation. The dollar was largely unchanged. Oil futures rose, aided by fresh U.S. sanctions on Iran. Gold edged higher to another record.

MARKET WRAPS

EQUITIES

The Nasdaq Composite dropped, with some technology stocks stuck in a slump as the artificial-intelligence growth story remains murky.

The tech-heavy index finished the day 1.2% lower, dragged down by companies such as Palantir, Constellation Energy and PDD. The S&P 500 dropped 0.5%, while the Dow Jones Industrial Average added 0.1%, boosted by a 4.9% jump in Nike stock and modest climbs in the shares of Boeing and Travelers Cos.

The S&P 500 finished the last hour trading lower after President Trump said in a press conference that tariffs on Canada and Mexico were set to move forward on schedule next week. The index has lost all of its post-inauguration gains and has lost 0.2% since Trump took office.

Earlier Monday, Chinese shares closed mixed as investors awaited the upcoming Two Sessions meetings for more policy signals from Beijing. Among major stocks, property stocks advanced.

The Shanghai Composite Index was dropped 0.2%, the Shenzhen Composite edged 0.1% higher, while the ChiNext Price Index was 0.7% lower. The Hang Seng Tech Index closed 0.6% lower as pharmaceutical and technology stocks led losses.

Japan's Nikkei Stock Average was closed for the Emperor's Birthday holiday.

Stocks in Australia rose, as the S&P/ASX 200 Benchmark Index added 0.1%, snapping a five-day losing streak. The blue-chip S&P/ASX 20 Index, which includes the country's major banks and iron-ore miners, added 0.8%.

New Zealand's NZX-50 fell 1.7%, hitting its lowest closing level since early October amid widespread losses. The NZX-50 is now down 4.4% for 2025. Utility, aged-care and real-estate stocks were among the biggest losers.

COMMODITIES

Oil futures finished higher, with prices finding support after a nearly 3% decline Friday, as the U.S. imposed fresh sanctions on Iran, impacting its crude sector. Traders also weighed prospects for talks aimed at ending Russia's war against Ukraine and reports that Iraq will resume oil exports from its Kurdish region.

West Texas Intermediate crude for April delivery closed climbed 0.4% to settle at $70.70 a barrel. April Brent crude, the global benchmark, edged up 0.5% to $74.78 a barrel.

The fresh sanctions on Iran have "invited a modest bid to the market and the news is helping WTI defend the psychological $70 level as we start the trading week," said Tyler Richey, co-editor at Sevens Report Research.

Front month February gold gained 0.4% to $2947.90 -- a fresh record high.

TODAY'S TOP HEADLINES

Trump Says He Is in Talks With Putin About 'Economic Development' Deal

President Trump said he was in talks with Russian President Vladimir Putin about an economic-development deal, while the U.S. suffered a diplomatic rebuke at the United Nations over an effort to mark the third anniversary of Moscow's full-scale invasion of Ukraine.

"I am in serious discussions with President Vladimir Putin of Russia concerning the ending of the War, and also major Economic Development transactions which will take place between the United States and Russia, " Trump wrote Monday on social media. "Talks are proceeding very well!"

In the aftermath of Russia's February 2022 invasion of Ukraine, the U.S. has sought to isolate Moscow through sanctions and other measures. An economic deal with Moscow would mark a significant reversal of that policy. The White House didn't immediately respond to a request for comment about Trump's plans.

U.S. Economic Growth Falls Back Below Average

America's economic activity lost pace at the start of the year, according to a monthly index set out Monday.

The Chicago Fed National Activity Index declined to minus 0.03 in January from 0.18 in December, according to new and revised figures. The reading below zero suggests growth lagged the long-term average.

Falling activity in production, and personal consumption and housing were to blame for the weaker activity at the start of 2025, the figures showed. By contrast, employment-related indicators gained steam, suggesting the jobs market remains robust.

U.S. to Hit Chinese Ships With Hefty Port Fees

The U.S. trade war with China is escalating beyond tariffs with a plan by the Trump administration to impose steep fees on Chinese shipping companies and any Chinese-built vessels that enter U.S. ports.

The proposal, unveiled on Friday by the office of the U.S. Trade Representative, would impose millions of dollars in new fees each time one of these vessels enters a U.S. port, adding costs that would likely be passed down to U.S. importers and exporters through higher freight rates.

Chinese shipyards accounted for more than half of the cargo ships, tankers and other ocean vessels that were built in 2023 to ferry goods across the seas for everyone from Amazon to Volkswagen, as well as U.S. farmers and energy producers.

ECB Might Have to Lower Key Rate to Level That Stimulates Economy, Wunsch Says

The European Central Bank may have to lower its key rate to a level that stimulates activity if the eurozone economy remains weak and inflation cools, the head of Belgium's central bank said in an interview.

National Bank of Belgium Governor Pierre Wunsch, who is an ECB rate setter, also said a big increase in military spending to reduce Europe's dependence on the U.S. could revive European factories that have too much capacity and too little demand.

ECB policymakers meet next week and are expected to lower the key interest rate for a sixth time since June, to 2.5% from 2.75%. That would bring the key rate closer to the range of 1.75% to 2.25% that economists at the central bank estimate neither spurs nor slows growth.

Starbucks to Lay Off More Than 1,000 Workers

Starbucks said it would lay off 1,100 corporate employees and not fill hundreds of open roles, part of new Chief Executive Brian Niccol's effort to streamline operations.

Niccol said in a message Monday that the cuts would remove corporate layers and duplications and would help the coffee company become more focused.

"We believe it's a necessary change to position Starbucks for future success," Niccol said.

Apple Earmarks $500 Billion for U.S. Expansion

Apple said it plans to spend more than $500 billion over the next four years, touting a mixture of new and existing initiatives that it said will expand its manufacturing footprint in the U.S.

The iPhone maker's announcement Monday included expanded spending on chips manufactured in the U.S. by Apple's partners, and a new 250,000-square-foot factory in Houston. That plant, built with partners, is slated to open in 2026 and produce servers supporting Apple Intelligence, the company's generative-AI system.

Apple's announcement comes as it and other tech giants are working to strengthen relations with President Trump, who is talking up tariffs and other policies that could have major effects on the industry.

Expected Major Events for Tuesday

01:00/SKA: Bank of Korea Monetary Policy Committee meeting and decision

02:00/SKA: Jan Department store sales

05:00/JPN: Jan Supermarket sales

05:30/JPN: Jan Tokyo area department store sales

05:30/JPN: Jan Nationwide department store sales

06:00/JPN: Jan Revised Machine Tool Orders

08:00/TAI: Jan Industrial output

08:30/HK: Jan External Merchandise Trade

10:59/THA: Jan Trade data

All times in GMT. Powered by Onclusive and Dow Jones.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

February 24, 2025 17:00 ET (22:00 GMT)

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