Market Update: February 3 – February 10, 2025

Trade Tensions Escalate in North America

Over the past week, significant developments have emerged concerning trade relations between the United States, Canada, and Mexico. On February 1, 2025, President Donald Trump announced the imposition of a 25% tariff on imports from Canada and Mexico, citing concerns over illegal immigration and drug trafficking. In response, both Canada and Mexico declared their intent to implement retaliatory tariffs on U.S. goods. However, by February 4, the U.S. agreed to pause these tariffs for 30 days to allow for further negotiations and for Canada and Mexico to enhance border security measures.¹  

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Department of Government Efficiency Initiatives

In a move to streamline federal operations, President Trump established the Department of Government Efficiency (DOGE) on January 20, 2025. Led by Elon Musk, DOGE aims to modernize federal technology and software to maximize governmental efficiency and productivity. Recent initiatives include efforts to simplify the government’s financial systems and enhance accountability in federal spending. These changes are anticipated to impact various sectors, including defense and healthcare, by improving the efficiency of government contracts and services.²  

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Earnings Reports Highlights

Several major companies released their earnings reports last week:

• Apple Inc. reported a 4% year-over-year increase in revenue for its fiscal first quarter, reaching $124.3 billion. The company’s services sector achieved a new all-time high in revenue.³  

• Pinterest and Affirm both saw significant surges in their stock prices following positive earnings reports, contributing to a 1.3% gain in the Connected Economy 100 Index.⁴  

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Market Moves Last Week

Over the past week, the U.S. stock market experienced mixed performance. On Monday, February 3, 2025, the S&P 500 declined by 0.8%, closing at 5,994.57, while the Dow Jones Industrial Average (DJIA) decreased by 0.3%, ending the session at 44,421.91.⁵   By Thursday, February 6, the S&P 500 had risen by 0.4%, approaching its all-time high, whereas the DJIA slipped by 0.3%.⁶   As of Monday, February 10, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, was trading at approximately $604.48, reflecting a slight increase from the previous close. Similarly, the SPDR Dow Jones Industrial Average ETF (DIA), mirroring the DJIA, was priced around $444.53, also showing a modest uptick.

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Investors are advised to stay informed about these developments, as ongoing trade negotiations and government efficiency initiatives may influence economic conditions in the coming weeks

1. https://news.westernu.ca/2025/02/trump-tariffs-paused/ ↩︎
2.  https://www.whitehouse.gov/presidential-actions/2025/01/establishing-and-implementing-the-presidents-department-of-government-efficiency/ ↩︎
3.  https://www.apple.com/newsroom/2025/01/apple-reports-first-quarter-results/ ↩︎
4.  https://www.pymnts.com/connectedeconomy/2025/pinterest-affirm-surge-on-earnings-as-ce-100-index-gains-1-3/ ↩︎
5.  https://apnews.com/article/wall-street-stocks-dow-nasdaq-79b6ff50b0d6a9c9c615e1164463bcbd ↩︎
6.  https://www.investopedia.com/dow-jones-today-02062025-8786861 ↩︎