U.S. stock markets sour, Dow Jones dives 749 points

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Wall Street tumbles Friday, Nasdaq Composite loses more than 2%

Lola Evans
22 Feb 2025, 02:51 GMT+10

NEW YORK, New York - Concerns over U.S. President Donald Trump's startling diversions from his country's long-held policies, and the threat of new tariffs, together with economic data showing consumer sentiment in retreat, and business activity declining, drove North American markets sharply lower Friday.

"I don't like all this red on a Friday," Greg Bassuk, CEO at AXS Investments in New York told Reuters news agency Friday. "We're seeing consumer sentiment, tariffs and corporate earnings having leap-frogged AI and technology as the primary drivers of market direction."

All major U.S. indices closed in negative territory amid investor caution.

The Standard and Poor's 500 finished at 6,013.13, down 104.39 points or 1.71 percent, with trading volume reaching 3.352 billion shares.

The Dow Jones Industrial Average also declined, ending the day at 43,428.02—a loss of a whopping 748.63 points or 1.69 percent—with a volume of 618.46 million shares.

Meanwhile, the tech-heavy NASDAQ Composite dropped 438.36 points to close at 19,524.01, registering a 2.20 percent decline on robust trading of 7.714 billion shares.

Global FX Markets See Mixed Movements on Friday

Foreign exchange markets around the world closed Friday with a mixed bag of results as key currency pairs posted modest gains and losses amid a climate of cautious investor sentiment.

Euro and US Dollar Dynamics
The EURUSD pair last traded at 1.0460 as the euro fell by 0.38 percent against the U.S. dollar, reflecting ongoing concerns over economic recovery prospects.

Meanwhile, the USDJPY pair settled at 149.13 with the dollar down by 0.33 percent relative to the Japanese yen, signaling a modest shift as traders adjusted their risk positions.

Conversely, he U.S. dollar appreciated against the Canadian dollar. The USDCAD pair climbed to 1.4227, up by 0.42 percent, as markets reacted to favorable economic data from the United States.

At the same time, the British pound struggled, with the GBPUSD pair recording 1.2630, down by 0.29 percent, underscoring persistent uncertainties amid ongoing political and economic debates in the United Kingdom.

Safe-Haven and Commodity-Linked Currencies
The U.S. dollar eased slightly against the Swiss franc, with the USDCHF pair settling at 0.8970, a decline of 0.08 percent.

In the Oceania region, both the Australian dollar and the New Zealand dollar fell. The AUDUSD pair traded at 0.6357, down by 0.65 percent, while the NZDUSD pair was at 0.57414, declining by 0.35 percent, highlighting regional pressures on commodity-linked currencies.

Overall, Friday's trading session in the foreign exchange market underscores a continued state of flux, with investors weighing global economic data and central bank signals. Market participants remain alert as economic indicators and geopolitical developments are expected to drive further volatility in the coming days.

Global markets close mixed Friday with movements contained, except in Canada where large falls were experienced

Global markets closed Friday with a mix of modest gains and slight declines as investors reacted cautiously amid ongoing economic uncertainty.

Canada

Across the border in Canada, the S&P/TSX Composite index closed at 25,147.03, sliding 367.05 points or 1.44 percent, with 262.467 million shares exchanging hands.

UK and European Markets

In the United Kingdom, the FTSE 100 ended the session at 8,659.37 after falling by 3.60 points—a decline of 0.04 percent.

Over in Germany, the DAX P slipped by 27.09 points to close at 22,287.56, down 0.12 percent.

French equities fared better, with the CAC 40 rising by 31.93 points to finish at 8,154.51, an increase of 0.39 percent.

The broader eurozone was similarly mixed as the EURO STOXX 50 I gained 13.82 points to settle at 5,474.85, up 0.25 percent.

Elsewhere, the Euronext 100 Index advanced by 3.45 points to reach 1,593.41, up 0.22 percent, while Belgium's BEL 20 added 36.04 points to close at 4,405.39, up 0.82 percent.

Asian Markets

Asian markets showed divergent trends. Hong Kong's HANG SENG INDEX surged by 900.94 points to finish at 23,477.92, a robust increase of 3.99 percent.

In Singapore, the STI Index edged up by 2.43 points to close at 3,929.94, up 0.06 percent.

Turning to the Asian heavyweight indices, China's SSE Composite Index advanced by 28.33 points to end at 3,379.11, up 0.85 percent on a substantial trading volume of 689.478 million shares. Japan's Nikkei 225 edged higher by 98.90 points to finish at 38,776.94, up 0.26 percent.

In the Indian subcontinent, the S&P BSE SENSEX dropped by 424.90 points to finish at 75,311.06, down 0.56 percent, whereas Indonesia's IDX COMPOSITE managed a modest gain of 14.96 points to close at 6,803.00, up 0.22 percent.

In Malaysia the FTSE Bursa Malaysia KLCI advanced by 13.36 points to end at 1,591.03, up 0.85 percent,.

South Korea's KOSPI Composite Index inched up by 0.52 points to settle at 2,654.58, a slight increase of 0.02 percent, despite trading volume of 444,704 shares. Taiwan's TWSE Capitalization Weighted Stock Index showed a more robust performance, rising by 242.79 points to close at 23,730.25, up 1.03 percent. South Africa's Top 40 USD Net TRI Index recorded a gain of 13.12 points to finish at 4,775.06, up 0.28 percent.

Oceania

Australia's S&P/ASX 200 dipped by 26.60 points to settle at 8,296.20, down 0.32 percent, while the Australian ALL ORDINARIES lost 30.80 points to end at 8,570.90, a decline of 0.36 percent.

In New Zealand the S&P/NZX 50 INDEX GROSS fell by 127.78 points to finish at 12,752.58, a decline of 0.99 percent.

Middle East

Middle East markets were mostly closed on Friday and will reopen on Sunday.

African Markets

The JNOU.JO in South Africa advanced 13.12 points or 0.28 percent Friday to close at 4,775.06.

Currency and Other Indices

In currency markets, the US Dollar Index increased by 0.24 points to 106.62, up 0.23 percent. The MSCI EUROPE index climbed by 7.67 points to close at 2,212.91, an increase of 0.35 percent. However, both the British Pound Currency Index and the Euro Currency Index experienced declines—falling by 0.32 and 0.37 points to close at 126.34 (down 0.26 percent) and 104.63 (down 0.35 percent), respectively.

In currency-specific performance, the Japanese Yen Currency Index appreciated by 0.21 points to 67.05, up 0.31 percent, while the Australian Dollar Currency Index fell by 0.41 points to settle at 63.57, down 0.64 percent.

Market Outlook

The varied performance across these major indices highlights the delicate balance of risk and opportunity that investors face amid evolving economic conditions. With central bank policies and key economic data on the horizon, market participants are bracing for potential volatility in the coming week.

Overall, Friday's trading session served as a reminder of the global markets' interconnected nature, where gains in one region can be offset by declines in another, painting a complex picture of investor sentiment worldwide.