U.S. Stocks Fall, Mag Techs Underperform

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week of Feb 28, most U.S. stock indexes declined for the second consecutive week, although the Dow Jones Industrial Average(DJI) finished 0.95% higher, adding to its year-to-date outperformance versus the other major indexes. Growth stocks significantly underperformed, and the Nasdaq Composite(COMP) recorded its worst weekly drop since early September as tech stocks, particularly the so-called Magnificent Seven(Mag 7), declined amid ongoing regulatory uncertainty and concerns that the multiyear artificial intelligence-fueled rally could be losing steam (shares of NVIDIA fell 8.48% on Thursday following the chipmaker’s highly anticipated earnings report). Tariff fears also continued to be a drag on equities as Donald Trump reiterated plans to impose new levies on several trade partners by March 4.

Refer to below major indexes performance table for the week and monthly performance for Feb.

Monthly major indexes performance for the month of Feb.

Key highlights for the week and next:

1.    Inflation weighs on consumer confidence. Core personal consumption expenditures (PCE) price index data on Friday showed prices rising by 0.3% in January, largely in line with expectations. On a year-over-year basis, prices rose 2.6%, in line with estimates and lower than the prior month of 2.8%, but still above the Fed’s long-term target of 2%. The report also noted that while personal incomes rose 0.9% in January, spending contracted, a sign that consumers may be exercising caution in the face of persistent inflation and uncertainty. 

2.    GDP growth in the Q4 of 2024 at annualized rate of 2.3%, in line with estimates. For full year, U.S GDP increased 2.8%. 

3.    Policy uncertainty. Trump said Canada and Mexico tariffs are on track to go into effect on March 4, along with an additional 10% tax on Chinese imports. He also proposed new tariffs on the European Union and reiterated that reciprocal tariffs are set for April 2. The elevated trade-policy uncertainty is starting to weigh on sentiment, and, if it persists, may prompt businesses to defer or cancel investments, and prompt consumers to pull back on spending. 

4.    Corporate earnings. With about 95% of the S&P 500 companies having reported results, the Q4 earnings season is largely over. Profits grew 18% from a year ago, the highest quarterly earnings increase in three years. And full-year 2025 estimates are pointing to double-digit growth, which provides a buffer for equities against any moderate decline in valuations that may take place this year. 

SPX sectors in play

Seven out of the 11 SPX sectors recorded weekly gain. Last week, the SPX briefly fell below last year's closing price, erasing the year-to-date gains, and dropping 4.5% from its all-time high reached on February 19. Over the past two years, the Magnificent 7 have driven more than 50% of the index's gains. However, this year, the group has shifted from a leader to a laggard, entering correction territory, while the broader index has remained rangebound over the past three months. Growth stocks significantly underperformed, and the Nasdaq Composite recorded its worst weekly drop since early September. Financials (XLF) and Health Care(XLV) sectors were among top performers while Technology( XLK) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Both SPX and COMP indexes recorded two-week decline streak, while DJI rebounded after from previous week’s decline. COMP closed new low since Nov 2024 led by the big techs. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets fell for the week after the U.S. ratcheted up measures targeting China’s economy. The Shanghai Composite Index(SSE) slid 1.72% while the blue chip CSI 300 declined 2.22%. In Hong Kong, the benchmark Hang Seng Index down 2.29%. (refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    Most of the week’s declines occurred on Friday, a day after President Trump announced an additional 10% levy on Chinese imports effective March 4, along with 25% tariffs on Canada and Mexico. The Trump administration previously imposed a 10% tariff on all Chinese products that went into effect February 4. In response, China will “counter with all necessary measures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson said. 

2.    The latest tariff threat came days after the Trump administration issued a memo instructing the Committee on Foreign Investment in the U.S. (CFIUS) to curb Chinese spending on strategic sectors like technology and energy. The U.S. also plans to tighten restrictions on U.S. semiconductor technology exports to China and to lean on Japan and the Netherlands to step up their restrictions on China’s chip industry, Bloomberg reported, citing unnamed officials. While the move to restrict U.S. tech exports to China appears to be a continuation of policies under the Biden administration, many analysts viewed the order to CFIUS—a committee that reviews proposed investments by foreign entities for national security threats—as further evidence of a decoupling between the world’s two largest economies. 

3.    Looking ahead, many investors are eyeing China’s Two Sessions, an annual political event in which Beijing unveils its economic priorities and targets for the coming year. China will likely maintain a gross domestic product growth target of “around 5%” for the third straight year, according to the Asia Society Policy Institute. Analysts also expect China to reveal a fiscal deficit ratio of 4% of GDP—a record high target—and a consumer inflation target of around 2%, down from the previous year’s 3%, reflecting deflationary pressures on the economy. The Two Sessions, which refer to the concurrent meetings of the Chinese People’s Political Consultative Conference and the National People’s Congress, begin March 4 and 5, respectively, and are expected to end on or around March 11.

Refer to below .HSI stocks top 40 performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) slid 0.87% to close at 3895.7 for the week, it hit record of 3951.64 level on Monday and traded lower for the rest of the week. The index recorded four-week winning streak before posting its first weekly loss, but its uptrend remains intact.

Weekly top index gainer was ST engineering with 6.29% up and biggest loser was YZJ Ship with 26% decline, due to the potential impact of proposed U.S tariff on China built ships.

Refer to below STI stocks weekly performance table.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.