Day Traders Diary

2/27/25

The major averages pulled back today with losses in the tech heavy Nasdaq accelerating in the afternoon on weakness in tech darling, Nvidia. The Dow Jones Industrial Average lost 193 points, or 0.45%, to finish at 43,239. The S&P 500 fell 94 points or 1.59% while the Nasdaq dropped 530 points or 2.78%. The Nasdaq is now down nearly 6%.

Shares of Nvidia fell 8% even though they beat estimates as sale rose 77% to $39.33 billion. Management said demand for their new AI Blackwell chip is amazing, but investors were in a selling mood. The whole chip sector sold off today, down 6%.

The broader market was concerned with President Donald Trump's declaration that tariffs on Canada and Mexico would proceed as planned. In a post on Truth Social, Trump announced the proposed tariffs of 25% on Mexico and Canada will take effect on March 4 after the one-month moratorium ends. Trump claimed that the two countries had yet to curb the flow of drugs over the border by enough. The president also stated that China, which already faces 10% tariffs from the U.S., would face an additional 10% levy.

On the economic front, a jump in jobless claims also subdued sentiment, adding to recent concerns of economic softening. Jobless claims for the week ended Feb. 22 came in at 242,000. The benchmark 10-year yield Treasury yield rose 3 basis points to 4.28% while the 2-year Treasury yield rose marginally to 4.07%.

On Friday, traders will be focused on personal consumption expenditures price index — the Federal Reserve's preferred inflation gauge.

Gold was down 1.4% to a two week low. The price of oil rose 2% while bitcoin was quiet, but still near four month low.

With just two trading sessions left in February, all three major averages are on pace to finish lower. The broad market index has dropped almost 3%, while the Dow and the Nasdaq are down 2.9% and 5.5%, respectively.