U.S. Markets Surge on Rate Cut Hopes; Nvidia, Tesla, and Bank of America Shine

On February 28, 2025, U.S. stock markets closed higher, with the S&P 500 index up 1.59%, the Dow Jones Industrial Average up 1.39%, and the Nasdaq Composite up 1.63%. Market participants continued to anticipate a Fed rate cut in June, following Personal Consumption Expenditures (PCE) data that aligned with inflation expectations. The likelihood of a second rate cut by September also increased. Fed's Lorie Logan stated that there are no current considerations for rate hikes, with inflation expectations remaining stable.

Based on the market performance, the non-essential consumer goods and financial sectors outperformed the S&P index.

Nvidia shares surged 3.97% on strong fourth-quarter earnings that exceeded Wall Street expectations, driven by robust growth in artificial intelligence (AI). The tech giant's impressive performance underscored the increasing demand for AI technologies, boosting investor confidence in the company's future prospects. Tesla stock climbed 3.91% as investors cheered growth in the energy segment and the promise of new model launches in 2025. The electric vehicle maker's AI initiatives also contributed to the positive sentiment, as investors showed increasing confidence in Tesla's ability to innovate and adapt to the evolving market landscape. Bank of America shares rose 4.49% following recent revisions in earnings estimates, which indicated potential growth and sparked investor interest in the financial institution. The positive outlook on the bank's financial performance contributed to the stock's upward trajectory, reflecting investors' optimism about the company's future prospects.

Organogenesis surged 102.28% today, driven by a 27% increase in revenue to $118.6 million in its Advanced Wound Care segment. Interactive Strength rose 67.97% following its strategic acquisition of Sportstech, which is expected to significantly boost revenue and market position. Nvni Group fell 49.50% amid acquisition-related concerns, while Sacks Parente Golf dropped 48.62% to a 52-week low due to market challenges.

S&P downgraded France's outlook from stable to negative, which could impact investor sentiment in the global markets, including U.S. equities. Meanwhile, major tech stocks, led by Tesla and Nvidia, showed signs of recovery, potentially ending a six-day losing streak. Tesla's stock rose by 3.9%, while Nvidia gained 1.3% after a significant drop the previous day. Additionally, traders continue to bet on the Federal Reserve cutting interest rates in June after PCE data showed inflation aligning with expectations. The probability of the Fed maintaining rates in March remains high at 94.5%, with a small chance of a rate cut.