US Stocks end mostly lower

The US stocks were mostly lower on Friday, 26 February 2021, with the S&P 500 and the Dow indexes ending lower as energy and financial stocks pulled back, while the broader Nasdaq managed to settled higher as Big Tech names rebounded after a large sell-off in the previous session amid surging bond yields.

At the close of trade, the Dow Jones Industrial Average index declined 469.64 points, or 1.5%, to 30,932.37. The S&P500 index dropped 18.19 points, or 0.48%, to 3,811.15. The tech-heavy Nasdaq Composite Index added 72.96 points, or 0.56%, to 13,192.34. For the week, the Nasdaq plummeted by 4.9%, the S&P 500 tumbled by 2.4% and the Dow slumped by 1.8%.

The volatility seen over the course of the trading session came as traders kept a close eye on activity in the bond markets following the recent spike in yields. The 10-year Treasury yield fell 10 basis points to around 1.42% Friday, after surging above 1.6% at one point on Thursday. Rising yields make bonds more attractive to investors relative to stocks.

The fluctuations in the bond markets came following the release of another batch of largely upbeat U.S. economic data. A report from the Commerce Department showed U.S. personal income skyrocketed in the month of January, reflecting the issuance of $600 stimulus checks. The Commerce Department said personal income spiked by 10.0% in January after rising by 0.6% in December. The report also showed a significant rebound in personal spending, which surged up by 2.4% in January after falling by a revised 0.4% in December.

Trade data showed that the U.S. trade deficit in goods widened to $83.7 billion in January from a revised $83.2 billion in the prior month, the Commerce Department said Friday. Imports of goods, such as consumer electronics, rose 1.1% to $218.9 billion in January. Goods imports were up 8.2% compared with a year earlier. Exports rose 1.4% to $135.2 billion, but were down 0.7% compared with one year ago.

The University of Michigan's final read on its February consumer sentiment index came in at 76.8 in February from 79 in prior month.

A steep drop by shares of Salesfore (CRM) weighed on the Dow, with the business software company tumbling by 6.3% after reporting better than expected fourth quarter results but providing a disappointing profit forecast.

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