This article summarises stock market performance in the USA, Europe, Asia, India, and Oceania during the week ending 28 February 2025. To ensure comprehensive coverage, this analysis draws on data from reputable financial news websites, market indices, and expert commentaries.
USA
The US stock market demonstrated resilience, closing with gains despite a volatile week. All major indices ended higher on Friday, 28th February 2025. The S&P 500, after briefly dipping below the previous year\’s closing price earlier in the week, rebounded to close at 5,954.50, marking a 1.59% increase for the week 1. Notably, the S&P 500 remains significantly higher than a year ago, showcasing the long-term strength of the market 3. The Dow Jones Industrial Average also exhibited an upward trend, closing at 43,840.91, a 1.39% rise 1. However, it\’s worth noting that the Dow did hit a five-month low earlier in the week, indicating some underlying concerns 4. The Nasdaq Composite followed suit, closing at 18,847.28, reflecting a 1.63% gain for the week 1.
Factors Affecting US Market Performance
Several factors contributed to the dynamic performance of the US stock market this week:
- Growth Concerns: Recent economic data, including a decline in retail sales and a contraction in the services sector, sparked concerns about potential slowing economic growth 3.
- Policy Uncertainty: The uncertainty surrounding potential tariffs on foreign goods introduced by the new administration weighed on investor sentiment 3.
- Tech Sector Dynamics: It’s crucial to acknowledge the significant influence of the “Magnificent Seven” tech stocks on the overall market performance. These companies have been major contributors to the S&P 500’s decline, highlighting the ongoing shift in market dynamics 5.
- Positive Factors: Despite the challenges, several positive factors supported the market, including overall economic growth, a steady labor market, robust spending on artificial intelligence (AI), rising corporate profits, and the Federal Reserve’s continued rate-cutting cycle 3.
Sector-Specific Performance within the S&P 500
A closer look at the S&P 500 reveals a mixed performance across sectors:
| Sector | 1 Week | YTD |
| Communication services | 2.0% | 8.9% |
| Consumer discretionary | 0.3% | 1.0% |
| Consumer staples | 1.8% | 5.5% |
| Energy | 1.6% | 4.8% |
| Financials | 0.0% | 7.2% |
| Healthcare | -1.1% | 5.3% |
| Industrials | 0.2% | 4.4% |
| Information tech | 3.8% | 1.6% |
| Materials | 1.8% | 6.9% |
| Real estate | 0.4% | 3.1% |
| Utilities | 1.2% | 4.5% |
Source: 4
This data indicates a broadening of market leadership, with sectors like financials, energy, and healthcare outperforming while technology shows signs of lagging.
Expert Opinions on the US Market
Expert opinions on the US stock market were divided. Some analysts expressed concerns about the potential impact of tariffs and a possible economic slowdown 5. However, others maintained an optimistic outlook, citing strong corporate earnings and the potential for further positive surprises 6.
Europe
European stocks experienced a slight dip this week, with the Euro Stoxx 50 closing at 5,466.65, a 0.09% decrease 7. Despite this minor setback, the index has shown impressive growth, surging 11.66% since the start of 2025 and remaining close to its all-time high 7.
Factors Affecting European Market Performance
Several factors influenced the European stock market this week:
- US Tariff Concerns: Concerns about the potential impact of US tariffs on the EU economy created some uncertainty in the market 7.
- Valuation Expansion: Europe’s outperformance is partly attributed to a valuation expansion, suggesting that investors are becoming more optimistic about the region’s prospects 9.
- Positive Outlook: Despite the tariff concerns, several factors point to a potentially positive outlook for Europe, including improving economic activity, supportive policies, and the possibility of peace in Ukraine 10.
Expert Opinions on the European Market
Expert opinions on the European stock market were generally positive. Analysts highlighted the potential for a resurgence in the region, driven by factors such as lower energy prices, increased defense spending, and potential fiscal loosening 11. Notably, European stocks have outperformed their US counterparts in 2025, marking a significant shift in market dynamics 10.
Asia
Asian stock markets faced a challenging week, with most major indices closing lower on Friday, 28th February 2025. Japan’s Nikkei 225 closed at 37,155.50, down 2.90% for the week 12. This performance puts the Nikkei 225 down 6.98% year-to-date and below its 52-week high, indicating a period of relative weakness 13. South Korea’s Kospi also experienced a decline, closing at 2,532.78, down 3.39% 14. Hong Kong’s Hang Seng Index mirrored this trend, closing at 22,941.32, down 3.28% 14.
Factors Affecting Asian Market Performance
Several factors contributed to the downturn in Asian markets:
- Trade War Concerns: Concerns about a potential global trade war escalated by US tariff threats significantly impacted market sentiment in the region 15.
- Technology Sector Weakness: Technology shares were particularly affected, following a sell-off in Nvidia and other mega-cap stocks in the US 15.
- China’s Tech Sector: While facing overall challenges, China\’s tech sector received a boost from AI startup DeepSeek’s apparent efficiency gains, creating some positive momentum within the sector 16.
Expert Opinions on the Asian Market
Expert opinions on the Asian stock market were mixed. Some analysts expressed concerns about the impact of tariffs on the region\’s economy 17. Others highlighted the potential for stimulus measures from China\’s upcoming National People\’s Congress meeting to support growth and potentially influence investor sentiment 15.
India
The Indian stock market experienced a significant decline this week, with the BSE Sensex closing at 73,198.10, down 1.90% 18. The Nifty 50 also reflected this downward trend, closing at 22,124.70, down 1.86% 14.
Factors Affecting Indian Market Performance
Several factors contributed to the decline in the Indian stock market:
- Market Weakness: The Nifty Financial Services, Nifty Private Bank, and Nifty Bank indices, key components of the Indian stock market, all experienced declines, contributing to the overall market weakness 18.
- Foreign Capital Outflows: Significant foreign capital outflows from the Indian market exerted downward pressure on stock prices 19.
- Weak Corporate Earnings: Disappointing corporate earnings further dampened investor sentiment 19.
- Slowing Economic Growth: Concerns about slowing domestic economic growth added to the negative sentiment 19.
- US Tariff Concerns: Potential US tariffs also contributed to the negative sentiment in the Indian market 19.
- Potential Market Crash Factors: Experts have identified several potential reasons for the recent market crash, including concerns about weak earnings by Indian banks, MSCI rejig, DIIs stuck at higher levels, rising US bond yields, and FIIs moving from India to China 20.
Expert Opinions on the Indian Market
Expert opinions on the Indian stock market were generally cautious. Analysts recommended a gradual and staggered investment approach, with a focus on high-quality stocks or large-cap schemes of mutual funds 19. Some experts also suggested that the market may experience a sectoral rotation, creating potential opportunities for investors 21.
Oceania
The Oceania stock market, primarily represented by the S&P/ASX 200, ended the week lower, closing at 8,172.40, a 1.16% decline 14.
Sector-Specific Performance within the Australian Market
A closer look at the Australian stock market reveals the performance of various sector-specific indices:
| Index | Change | Week | Month | Year |
| ASX All Technology | -0.54% | -8.56% | -2.94% | +24.70% |
| Energy (Sector) | +0.67% | +2.76% | -5.23% | -18.99% |
| Financials (Sector) | +0.22% | -1.08% | -3.22% | +20.40% |
| ASX 200 Financials excl. A-REIT | +0.22% | -1.08% | -3.22% | +20.40% |
| ASX 200 A-REIT | -0.36% | -5.88% | -5.84% | +8.81% |
Source: 22
This data indicates a mixed performance across sectors, with technology experiencing a decline while energy and financials show more resilience.
Expert Opinions on the Oceania Market
Expert opinions on the Oceania stock market were limited. One analyst suggested that the market may be oversold and present a buying opportunity, but cautioned that this should be confirmed with other indicators 23.
US Tariff Threats
The US government’s proposed tariffs on various countries have emerged as a significant factor influencing global market sentiment. These tariffs, aimed at protecting domestic industries and addressing trade imbalances, have raised concerns about potential trade wars and their impact on global economic growth. The uncertainty surrounding the implementation and potential retaliatory measures from other countries has contributed to market volatility and investor anxiety.
Investment Strategy
In light of the current market dynamics, experts emphasise the importance of portfolio diversification across sectors, regions, and asset classes 3. This strategy can help mitigate risks associated with concentrated investments and potentially enhance returns in a volatile market environment.
Conclusion
The week ending 28th February 2025 presented a mixed picture of global stock market performance. While the US market ended with gains, concerns about economic growth and trade tensions persisted. European stocks demonstrated resilience despite tariff worries, while Asian and Indian markets faced challenges due to trade war concerns and domestic economic factors. The Oceania market also experienced a decline. Notably, a key trend in 2025 is the shift in market leadership from US mega-cap tech stocks to other sectors and regions, suggesting a potential change in market dynamics with broader participation from various sectors and global markets 3. This shift underscores the importance of a diversified investment approach to navigate the evolving market landscape.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual financial circumstances and risk tolerance. Investing in the stock market involves risk, including the potential loss of principal. Consult with a qualified financial advisor before making any investment decisions. The authors are not liable for any losses incurred as a result of relying on this information.
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