Markets Slip as Tech Stocks Weigh, U.S. GDP Revised Higher

Major U.S. indexes fell amid weakness in semiconductor and networking stocks, while gold stocks surged. GDP growth was revised up to 2.4% and bond yields rose.

The Nasdaq slid 94.98 points (0.5%) to 17,804.03, the Dow fell 155.09 points (0.4%) to 42,299.70 and the S&P 500 dipped 18.89 points (0.3%) to 5,693.31. Selling pressure eased as markets anticipated Trumps announcement. He called upcoming tariffs very lenient but warned of harsher measures if the EU and Canada harmed the U.S. economy.

On the U.S. economic front, the Commerce Department released a report showing the economy grew slightly faster than previously estimated in the fourth quarter of 2024. The Commerce Department said gross domestic product surged by 2.4% in the fourth quarter compared to the previously reported 2.3% jump. National Association of Realtors released a separate report which showed pending home sales saw a significant rebound in the month of February after plunging to an all-time low in January.

Semiconductor stocks significant moved downwards, dragging the Philadelphia Semiconductor Index down by 2.1%. Networking stocks was considerably weak, as reflected by the 1.9% slump by the NYSE Arca Networking Index. Airline, computer hardware and financial stocks also ended the day notably lower while gold stocks moved sharply higher along with the price of the precious metal.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index fell by 0.6%, while China's Shanghai Composite Index inched up by 0.2% and Hong Kong's Hang Seng Index rose by 0.4%. The major European markets all moved to the downside on the day. While the German DAX Index slid by 0.7%, the French CAC 40 Index decreased by 0.5% and the U.K.'s FTSE 100 Index dipped by 0.3%.

In the bond market, treasuries moved lower in reaction to the latest U.S. economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.1 bps to 4.36%.

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