US Stock Market Holds Steady Amid Intel Deal and Hopes for Ukraine War Talks

Tech Stocks See Gains as Tensions Between Ukraine and Russia Shift / AP

On February 18, 2025, the U.S. stock market showed a mixed performance, with semiconductor companies like Intel experiencing a rally, while market sentiment was influenced by growing expectations for a resolution to the ongoing Ukraine conflict.

As of 10:00 AM Eastern Time, the S&P 500 fluctuated around 6,122 points, close to its all-time high. The Nasdaq rose by 0.1%, and the Dow Jones Industrial Average traded near its Friday closing levels. The U.S. 10-year Treasury yield climbed by 5 basis points to reach 4.52%. Meanwhile, the Bloomberg Dollar Index edged up by 0.2%. West Texas Intermediate (WTI) crude oil saw a 1% increase, trading at $71.42 per barrel, while gold surged by 1.5%, reaching the $2,944 mark.

Intel, one of the major players in the semiconductor industry, saw a significant 5% increase in its stock price after reports from the Wall Street Journal suggested that TSMC and Broadcom were considering splitting a potential acquisition of the company. NVIDIA also saw a boost, rising by 1.27% to reclaim the $140 mark.

However, Meta Platforms, which had experienced a remarkable 20-day consecutive rally, faced a 2% decline on this day. Delta Airlines dropped by 1.6% following an incident where one of its subsidiary Endeavor Airlines' planes overturned at Toronto International Airport in Canada.

Additionally, Berkshire Hathaway, led by Warren Buffett, revealed it had reduced its stake in stocks, leading to declines for Bank of America and Citigroup, which fell by 1.2% and 0.7%, respectively.

Meanwhile, the geopolitical landscape influenced market sentiment. The U.S. and Russia, despite Ukraine's objections, held talks aimed at resolving the ongoing war. The meeting, however, excluded Ukraine and Europe, raising hopes for an eventual peace agreement. A potential summit between U.S. President Donald Trump and Russian President Vladimir Putin has yet to be scheduled, further fueling speculation about the war's future trajectory.

Experts like Matt Malley from Miller Tabak + believe that the S&P 500 could potentially break its all-time record if the war in Ukraine comes to a close. However, they emphasize that for a new market rally to gain momentum, the previous peak must be surpassed in a meaningful way.

On the economic front, the New York Manufacturing Index for February showed signs of growth, although future expectations remained bleak due to rising cost pressures and labor market concerns. The manufacturing index rose to 5.7, marking a return to the expansionary zone. However, economists surveyed by Dow Jones had expected a reading of -1, indicating potential contraction.

While shipments, unfilled orders, and inventory levels all posted positive figures, inflation concerns remained high. The prices paid index jumped by 11.2 points to 40.2, marking its highest level in nearly two years. The price increases index also surged by 10.3 points to 19.6. Despite this, future expectations for business growth fell sharply, with the future expectations index dropping 15 points to 22.2. Additionally, employment figures showed a slight decrease of 4.8 points, reflecting ongoing concerns about potential trade wars and tariff impacts on the job market.

These mixed signals from the market and economic indicators highlight the uncertain path ahead for both the U.S. economy and global geopolitical tensions, with investors carefully watching the ongoing developments in both sectors.