Market Tug-of-War: February’s Third Week

It started with a tweet or maybe a policy paper.

No one really remembers.

By Monday, “25% tariffs” were trending harder than Taylor Swift’s latest breakup.

The U.S. hit Canada, Mexico, and China with new taxes on steel, cars, and tech.

Markets panicked.

The Dow dropped 665 points, then recovered half after news of a 30-day break for Mexico.

Auto stocks sank. U.S. Steel fell 7%, while Nucor rose 3% after announcing a $500 million stock buyback.

In the end, trade wars weren’t just about economics. They were a test of who could hold their breath the longest.

Then China played its card.

Quietly, without fanfare, they rolled out AI chips priced 40% below NVIDIA’s flagship products.

The tech sector froze. NVIDIA shares plummeted 6.8%, dragging the Nasdaq into a 1.2% hole.

Panic spread… until a lifeline came from an unlikely place: the Pentagon.

AMD swooped in with a contract for “unhackable” military AI processors, its stock jumping 3% on the news.

The message was clear.

When China undercuts you, just sell to the people with fighter jets.

Midweek brought a tale of two earnings.

Genuine Parts Company, the auto parts giant, face-planted spectacularly. Profits crashed 58% after a $62 million tool rebranding disaster.

Analysts groaned. “Who rebrands screwdrivers?” muttered one CNBC host.

But Coca-Cola?

Same as ever.

Its 3.1% dividend yield fizzed on, powered by a 70% stranglehold on global soda sales.

Investors flocked to safety, stuffing portfolios with staples like toilet paper stocks and utilities.

Boring was suddenly beautiful.

Chaos breeds opportunists.

Ford, sensing disaster, dumped $200 million into Ohio battery plants ditching Mexican lithium.

Whirlpool wasn’t so nimble. Its shares imploded 12% under $300 million in tariff costs.

Meanwhile, FedEx trucks groaned under a 22% spike in Canadian deliveries.

Companies were hoarding aluminum like it was 2020 toilet paper.

FedEx shares quietly rose 5%, proving that in capitalism, even chaos has a delivery fee.

By Friday, optimism crept in briefly.

Then the Fed dropped the hammer.

Chair Powell’s “no rate cuts yet” speech sent Treasury yields soaring.

The 10-year government bond hit 1.84%, its highest since 2023.

Tech stocks bled (Nasdaq -1.6%), but the Dow clung to a 0.27% gain.

The S&P 500 closed at 5,994 down for the week but still up 1.9% in 2025.

Traders slumped into martinis, wondering: Was that the storm… or just the wind?

The Hidden Story

Three things saved markets from collapse: Tariff delays bought time.

Dividend dinosaurs (Coke, utilities) anchored nerves.

And AMD’s Pentagon deal proved innovation still pays. But dangers simmered.

The “fear gauge” (VIX) sat at 15.8 calm but deceptive.

Inflation expectations hit 3.5%, a 30-year high.

What Comes Next?

March 1 looms Mexico’s tariff grace period ends.

Will Trump blink?

Tech’s split. Government contracts (AMD) beat Chinese price wars (NVIDIA).

Dividends? Still the market’s comfort food.

As one hedge fund manager texted:

“This isn’t a crash. It’s a shakeout dodge the drama, and you’ll surf the next wave.”

For now, Wall Street shuffles into March battered but wiser.

Because in 2025, the only sure bets are volatility… and the fact that someone, somewhere, is still buying Coca-Cola.

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