U.S. equities traded sharply lower Monday midday, near session lows, following a higher Friday close. The S&P 500 is down over 8% from its February peak, with the Nasdaq and S&P on pace for their worst sessions of 2025. While the cap-weighted S&P 500 struggles, equal-weighted indexes are outperforming by the widest margin since July 2024. The “Magnificent 7” stocks, semiconductors, software, tech hardware, airlines, banks, and China tech led declines. Defensive and rate-sensitive sectors like REITs, utilities, consumer staples, healthcare, and telecom held up better. Treasuries firmed across the curve, reversing some of last week’s selloff. The dollar edged up 0.1%, gold dipped 0.3%, Bitcoin futures plunged 8.7%, and WTI crude fell 0.9%.
Growth concerns remained in focus, driven by a mix of weaker economic data and persistent tariff uncertainty. Trump administration rhetoric suggests potential economic softening, with the president referencing a “period of transition” and Treasury Secretary Bessent describing a “detox period.” Consumer spending resilience remains a key worry, compounded by the Citi Economic Surprise Index staying negative since mid-February. Meanwhile, the “Trump put” appears out of play, with the administration signaling less concern about market performance.
The NY Fed’s February Survey of Consumer Expectations showed a slight uptick in 1-year inflation expectations to 3.1%, while longer-term views remained steady. Economic reports due this week include JOLTS job openings (Tuesday), CPI (Wednesday), PPI and jobless claims (Thursday), and UMich consumer sentiment (Friday). The market will also absorb $119B in new Treasury issuance.
Monday saw several M&A headlines: ServiceNow Inc. (NOW) confirmed a $2.85B acquisition of Moveworks, Redfin Corporation (RDFN) will be acquired by Rocket Companies (RKT) in a $1.75B deal, and Mantle Ridge reportedly took a $1B+ stake in Cognizant (CTSH). Beacon Roofing Supply (BECN) is in talks with QXO Inc. (QXO) for a potential transaction. Post-close Friday, S&P 500 changes were announced, with DASH, TKO, WSM, and EXE joining the index. On the corporate front, Novo Nordisk’s (NVO) weight-loss drug trial disappointed, Ford (F) is set to inject €4.4B into its struggling German unit, and DexCom (DXCM) received an FDA warning letter. Key earnings this week include Oracle (ORCL) post-close Monday, Adobe (ADBE) Wednesday, and Dollar General (DG) Thursday morning.
PRISM Movers
Trevi Therapeutics (TRVI) leads the PRISM Emerging Pharmaceuticals after announcing positive Phase 2a RIVER trial results for Haduvio in refractory chronic cough. Shares have surged over 36%.
SciSparc Ltd. (SPRC) leads the PRISM Psychedelics Index as shares rise nearly 23% following the publication of a South Korean patent application for a psychedelic-based cocaine addiction treatment.
Comtech (CMTL) leads the PRISM Space Index after securing $26 million in sole-source contracts from L3Harris to advance next-gen SATCOM programs. Shares are up over 11%.
Aligos Therapeutics (ALGS) lags the PRISM Emerging Global Health Index with shares down nearly 22% after reporting weak Q4 and full-year 2024 financial results.
Intuitive Machines (LUNR) lags the PRISM Space Index, falling over 20% after its lunar lander failed a day after its historic landing.
Other notable mid-day movers include NOVA, UPST, and RSLS.
The post PRISM Mid-Day Market Moves: U.S. Stocks Sink as Growth Worries Mount; Tech, Bitcoin Lead Declines appeared first on PRISM MarketView.
