The S&P 500 snapped out of its four-day losing streak barely, with stock futures rising after the index closed just 0.01% higher on Wednesday.
Nvidia’s fourth-quarter earnings report was a major driver of the market’s recovery. The company surpassed Wall Street’s expectations for revenue and provided a strong forecast for the current period, indicating confidence in the AI boom. As a result, Nvidia shares rose over 3%.
Amazon also made headlines with its unveiling of “Alexa+,” a revamped digital assistant powered by generative AI. While the new tool will be available for $19.99 per month, it will be free for Amazon Prime members.
However, investors are growing concerned about an economic downturn. The yield curve inversion has raised fears of a recession, as it is a key indicator closely watched by the Federal Reserve. Despite this, a recession has not occurred in over two years since the last inversion in 2022.
Finally, President Donald Trump threatened to impose tariffs on European Union imports, sparking uncertainty and market volatility. The president’s tariff policies have already affected Canada, Mexico, China, steel, aluminum, automobiles, pharmaceuticals, and semiconductors.
Source: https://www.cnbc.com/2025/02/27/5-things-to-know-before-the-stock-market-opens-thursday-february-27.html