The S&P 500 Index ($SPX) (SPY) is down -0.22%, the Dow Jones Industrials Index ($DOWI) (DIA) has fallen -0.83%, and the Nasdaq 100 Index ($IUXX) (QQQ) is slightly lower by -0.08%. March E-mini S&P futures (ESH25) are down -0.22%, and March E-mini Nasdaq futures (NQH25) are down -0.03%.
Today’s stock market decline is driven by weak corporate earnings and regulatory concerns. The Dow Jones Industrials has dropped to a one-month low, with several major companies reporting disappointing results. Akamai Technologies (NASDAQ:AKAM) has plummeted more than -14% after issuing a weak revenue forecast for the full year. Meanwhile, UnitedHealth Group (NYSE:UNH) is down over -8% following reports that the U.S. Department of Justice is investigating the company’s Medicare billing practices.
Economic Data and Bond Yields Offer Some Support
Amid the stock market decline, a drop in bond yields has provided limited support for equities. The 10-year Treasury note yield is down -1.4 basis points, reflecting lower inflation expectations. Additionally, the U.S. February S&P Global Manufacturing PMI rose to an eight-month high of 51.6, surpassing forecasts of 51.4. This indicates some resilience in manufacturing activity, helping offset broader market concerns.
Despite these positive signals, traders are skeptical about near-term Federal Reserve rate cuts. Markets are currently pricing in only a 2% probability of a 25-basis-point rate cut at the upcoming Federal Open Market Committee (FOMC) meeting on March 18-19.
Global Markets Show Strength Despite U.S. Weakness
While U.S. stocks continue their decline, international markets are showing relative strength. The Euro Stoxx 50 is up +0.43%, while China’s Shanghai Composite Index climbed to a seven-week high with a +0.85% gain. Japan’s Nikkei 225 also rebounded from recent losses, closing +0.26% higher.
European government bonds are trading mixed, with Germany’s 10-year bund yield falling -4.6 basis points to 2.488%, while the UK 10-year gilt yield edged up +0.4 basis points to 4.611%. Meanwhile, traders are pricing in a 98% probability of a 25-basis-point rate cut by the European Central Bank at its March 6 meeting.
Major Stock Movers Amid the Stock Market Decline
Biggest Losers
Akamai Technologies (NASDAQ:AKAM) – Down over -14% after forecasting revenue of $4.00 billion to $4.20 billion, below expectations of $4.25 billion.
UnitedHealth Group (NYSE:UNH) – Dropped more than -8% following a report that the U.S. Department of Justice is investigating its Medicare billing.
Block (NYSE:SQ) – Declined over -10% after issuing a weak Q1 profit forecast of $2.32 billion, below the consensus of $2.38 billion.
NU Holdings (NYSE:NU) – Fell more than -14% after posting Q4 net income of $552.6 million, missing expectations of $566.4 million.
Globant SA (NYSE:GLOB) – Plunged over -18% after reporting disappointing Q1 revenue guidance of $618 million to $628 million, versus expectations of $637.8 million.
Rivian Automotive (NASDAQ:RIVN) – Dropped over -5% after lowering Q1 delivery guidance to 8,000 vehicles, far below the 14,000 produced in Q4.
RingCentral (NYSE:RNG) – Down more than -3% after forecasting weaker-than-expected Q1 earnings of $0.93 to $0.97 per share.
Biggest Gainers
MercadoLibre (NASDAQ:MELI) – Surged over +10% after reporting stronger-than-expected Q4 revenue of $6.10 billion, above the $5.96 billion consensus.
PDD Holdings (NASDAQ:PDD) – Up over +3% following upbeat earnings from Alibaba, which lifted Chinese stocks traded in the U.S.
Floor & Decor Holdings (NYSE:FND) – Gained more than +4% after exceeding Q4 earnings expectations with adjusted EPS of $0.44.
Five9 Inc (NASDAQ:FIVN) – Jumped over +8% after posting better-than-expected Q4 earnings and strong full-year guidance.
Innodata (NASDAQ:INOD) – Soared over +16% after beating Q4 earnings forecasts, reporting diluted EPS of $0.31 versus expectations of $0.22.
Unity Software (NYSE:U) – Rose more than +5% after HSBC upgraded the stock to “Buy” with a price target of $34.
Booking Holdings (NASDAQ:BKNG) – Climbed over +2% after reporting Q4 revenue of $5.47 billion, exceeding forecasts of $5.18 billion.
Looking Ahead: Market Sentiment Remains Fragile
Investors are closely watching upcoming economic data and Federal Reserve commentary for clues on future interest rate policy. With the stock market decline showing no immediate signs of reversal, earnings season continues to be a major driver of volatility. While some companies have posted positive results, weak guidance from major firms has put pressure on overall sentiment.
As traders digest the latest corporate news and economic reports, markets may remain choppy in the near term. Investors should stay cautious and monitor key indicators like inflation data, central bank decisions, and corporate earnings for further stock market direction.
Featured Image – Freepik
