Wall Street Falls Again, US Data Makes Markets More Cautious
US stocks weakened for the second consecutive session on Friday (February 20th), after a series of economic data signaled an unfavorable backdrop for the corporate sector. Wall Street's three major indexes fell by around 0.5%.
The main pressure came from US Q4 GDP data, which grew only 1.4% (annualized)—far below market expectations of 3%. This figure challenges the narrative that the US economy remains "resilient" amid tariff concerns and the risk of a government shutdown.
On the inflation front, the market was also shaken by higher-than-expected increases in the PCE price index and core PCE. This data reinforces the impression that inflation remains "sticky," making the chances of a more accommodative monetary policy from the Fed more difficult to maintain.
The policy tone also weighed on sentiment after policymakers emphasized that stubborn inflation must truly fall before interest rate decisions can be made more lenient. The combination of "weak growth + strong inflation" makes the market increasingly sensitive to the risk of prolonged high interest rates.
At the stock level, issuers that typically serve as barometers for AI speculation also experienced corrections. Nvidia, Meta, and Microsoft fell by around 1%, indicating that the previously high momentum is starting to subside amidst macro conditions that are less supportive of risk appetite.
The financial sector also continued to weaken, particularly banks and asset managers, which were dragged down by the downgraded credit outlook. Meanwhile, Newmont moved closer to flat, tending to weaken slightly after the company projected lower gold production this year, although commodity sentiment remains influenced by geopolitics.
Source: newsmaker.id
