After the Red February .. What are the expectations of the American stocks for the first trading in March?

American stocks fell at the end of last week, and the three main indicators of the Street closed last February in the red zone in a sign of increasing concern in the markets, according to the American “CNN” network.

US stock fluctuations

The fluctuations dominated the markets with the closure of traders for the gloomy month of February, which eliminated some gains, as “extreme fear” was the motive behind the decline in the markets on Friday and for the fourth consecutive day, according to the CNN’s fear index.

The morale of the stock markets

The shares increased at the beginning of last Friday with the support of the declining inflation data that provided the rest to investors. However, the markets moved to red in the middle of trading after a sharp exchange of accusations in the White House between US President Donald Trump and Ukrainian President Voludimir Zellinski, which raised a state of uncertainty about geopolitical stability.
Also read: American stocks decline … Dow Jones, Nasdak and Standard & Poor’s decline
The IX Index on Wall Street has risen to its highest level this year.
In subsequent trading, the markets regained their losses, the main indicators of the closure rose, the Dow Jones index ended, up 601 points or 1.39%, while the broader Standard & Poor’s 500 index increased by 1.59% and the Nasdaq Boat Index increased 1.63%.

February shares in the red area

However, the American markets stumbled in February and the last week of the Standard & Poor’s 500 index decreased by 1% and a decrease of 1.4% for the overall month.
The NASDAC index, which is dominated by the technology sector, decreased by 3.5% last week and 4% for the month, its highest level since April 2024.

Fears of stock investors are justified

“We believe that there are justified fears in the markets about the volume of money spent on artificial intelligence and capital spending centers taking into account the news received from Dibsic emerging in the field of artificial intelligence in China in late January,” said Larry Tentarry, chief strategic expert in Blue Chip Daily Trend Report.
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“The state of uncertainty about spending on artificial intelligence, along with concerns about economic growth, led to a weak performance of many leadership stocks in the Nasdaq Index,” Tentarry said.

American stock market expectations

Tentarry said that the NASDAC index tends significantly towards technology and last year increased by 2024 thanks to companies such as: Inviteia, Tsalla and Palatir, however, the shares of the emerging technology slowed last month and Tesla shares decreased by 26% during the past month.
“The reasons for the decline in Nasdak range from the risk of inflation to slowed growth to difficult expectations of his shares compared to other assets,” said Ted Mortonson, Managing Director of “Bird”.
While David Smith, a professor of economics at Biberdin College, Jarazadeio Business Administration, said: “Fears about the slowdown in potential economic growth may enhance the increasing aversion to risk, which may lead investors to shift away from the most volatile Nasdak index in favor of more stable investment options.”

Envolia’s profits

Invidia announced a strong quarterly profit on Wednesday, although the high evaluation of its shares raises the question about the amount of space remaining for operation.
However, the market is still close to its highest level, which reached only last week and the fluctuations in the market are not unusual at this time of the year.
“The recent declines in the stock market are simply normal fluctuations, due to a large extent that February is a historically volatile month and because we have witnessed great gains throughout January,” said Robert Rogerillo, chief investment official at “Priev Eagle Wilth Mansman”.

War Street warning signs

While the new inflation data was compatible with expectations, other economic data issued on Friday revealed cracks in the economy that contributed to the exhaustion of investor morale: consumers’ spending has declined much more than economists in January and recorded the largest monthly decline since February 2021.
“Investors will continue to focus on the uncertainty path with unexpected decrease in real spending in January due to poor consumer demand,” said Jeffrey Rocch, chief economist at LBL.
The Federal Reserve estimates in Atlanta have also been modified for economic growth in the first quarter of 2025 to expect a decrease of 1.5% instead of growth by 2.3%.