Live Nasdaq Composite: PDD Falls While APP Rebounds as Inflation Rears Its Head
Key Points
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Stocks came out of the gate lower on hotter than expected core inflation data.
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The Mag 7 stocks are weighing on the Nasdaq Composite.
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AppLovin is recouping some of yesterday’s declines as it goes on offense.
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Damage Done
Famous trader Peter Tuchman pointed out that the S&P 500 erased $1 trillion in market cap today. And at the current rate, the Nasdaq Composite is on track for a 10.3% decline in Q1 2025, its worst quarterly performance since 2022. The markets will be glad to have Q1 in the rear view mirror before long.
Bottom Fell Out
The bottom fell out in the stock market today, as evidenced by a 715 decline in the Dow Jones Industrial Average. The Nasdaq Composite’s decline was even steeper on a percentage basis, falling over 2%, while the S&P 500’s fall was nearly just as bad, as both indexes share some of the same components.
Inflation worries were a negative catalyst, after the updated reading on consumer sentiment for the month of March came in worse than feared. Adding insult to injury, not only is the auto sector a target of the tariffs, but pharmaceutical companies could be next in line.
Here’s a look at the damage, resulting in a down week for each of the major stock market averages:
Dow Jones Industrial Average: Down 715.80 (-1.69%)
Nasdaq Composite: Down 481.04 (-2.7%)
S&P 500: Down 112.37 (-1.97%)
Q1 2025 wraps up next week and earnings season won’t be too far behind.
Market Losses Widen
The markets aren’t faring any better as of mid-morning trading. In fact, stocks have widened their losses, with the Dow Jones Industrial Average now off by over 400 points. Boeing (NYSE: BA | BA Price Prediction) is the biggest drag on the Dow, falling close to 4% today.
Nearly every sector of the economy is trading in the red, with the exception of dependable utilities stocks. Consumer inflation data came in hotter than expected for the month of February, throwing a wrench into expectations for a couple of interest rate cuts in 2025.
Here’s a look at the performance as of mid-morning trading:
Dow Jones Industrial Average: Down 445.43 (-1.05%)
Nasdaq Composite: Down 323.32 (-1.82%)
S&P 500: Down 75.06 (-1.32%)
The markets are off to a wobbly start on Friday morning, with all three of the major stock market averages coming out of the gate lower. Today’s modest declines come on the heels of the latest sign of inflation rearing its head. February’s core inflation rate came in at 2.8%, loftier than economists had predicted, amid a monthly increase of 0.4% in personal consumption expenses. Core inflation hasn’t risen this dramatically since early 2024, giving traders and investors yet another reason to worry, as if auto tariffs weren’t enough.
The Nasdaq Composite is being dragged lower by declines in each of the Magnificent Seven stocks this morning. Amazon (Nasdaq: AMZN) is down the steepest with a 1.8% drop.
Here’s a look at the performance as of morning trading:
Dow Jones Industrial Average: Down 204.92 (-0.48%)
Nasdaq Composite: Down 92.93 (-0.53%)
S&P 500: Down 18.92 (-0.33%)
Market Movers
China’s PDD Holdings (Nasdaq: PDD) is weighing on the Nasdaq Composite, falling 4% amid profit taking as the stock is up 24% year-to-date. Also pressuring the stock was a Wall Street downgrade. One analyst firn downgraded shares of PDD Holdings to “neutral” from “buy” and lowered the price target.
Applovin Corp (Nasdaq: APP), a mobile-tech stock, is rising 4% on the day after yesterday’s sell-off in which it shaved off 20% of its value. AppLovin has gone on offense, reportedly hiring lawyers to probe accusations from short sellers that it is skewing its ad performance results. Wall Street firm Loop Capital has come on in defense of AppLovin, advising investors to add the stock aggressively.
Insurer W.R. Berkley Corp (NYSE: WRB) is soaring on deal news. Japan insurer Mitsui Sumitomo is scooping up 15% of WRB’s outstanding stock. The Japanese insurer is also getting a board seat in addition to its minority ownership stake.
Mondelez International (Nasdaq: MDLZ) is continuing its recession-proof rally, rising 1% on the day, 5.6% over the past five-day stretch and an impressive 14% year-to-date.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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