Wall Street’s major indexes closed the last week of February on a disappointing note, while monthly returns also turned negative.
The benchmark S&P 500 index closed the last week of February 0.44% lower than the prior week and 0.87% lower compared to January at 6,878.84.
The markets saw a selloff on Monday as renewed uncertainty gripped markets following President Donald Trump’s recent tariff announcement. Additionally, AI disruption fears continued to linger as software stocks dropped.
And while markets rebounded from the Monday selloff, large tech earnings and a hotter-than-expected wholesale inflation report marred sentiments.
Investor unease around the likelihood of an AI bubble is said to have impacted the megacap technology stocks.
Financials were also on the losing side. State Street Financial Sel Sec SPDR ETF (XLF) logged a loss of 2.02% on a weekly basis to close at $51.43.
Among the megacap stocks, American Express (AXP) led the pack. The stock pulled back by 10.77% to $308.90 amid a research report on Sunday, which revived fears that stablecoin-based technology will obviate the need for traditional card networks.
On Monday, Citrini Research released a hypothetical scenario on the disruption that agentic AI and stablecoins might cause in the enterprise software and payment sphere.
Wells Fargo (WFC), said to be among the Wall Street lenders exposed to the failed UK mortgage finance firm – Market Financial Solutions, was the next on the list.
The stock retreated 8.17% from the prior week to close at $81.45.
On the flip side, HSBC Holdings (HSBC) stood out as a clear winner in the category. The stock added 5.68% to end the week at $93.16.
Sentiments were lifted after the London-headquartered lender posted a higher Q4 revenue, a dividend hike, and new financial targets for 2026, 2027, and 2028.
Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) was also gaining in the run-up to the release of its Q4 results. BRK.A was up 1.41% week-over-week to $757K, while BRK.B increased 1.35% to $504.95.
Read about BRK’s Q4 earnings here – Berkshire Hathaway Q4 operating earnings -30% Y/Y, cash pile hits $373.3B.
Nu Holdings (NU) (-14.55% W/W to $14.98) was the top decliner among largecap stocks.
The São Paulo-based digital banking platform reported record Q4 revenue that exceeded Wall Street estimates, but saw a decrease in its efficiency ratio.
Meanwhile, Circle Internet Group (CRCL) (+32.40% W/W to $83.44) was the top weekly gainer.
The company behind the USDC stablecoin delivered Q4 earnings and revenue that topped consensus estimates as USDC in circulation at the end of the quarter climbed 72% from a year ago.
PayPal (PYPL) followed with a 10.95% weekly advance to close at $46.21.
The payments stock soared after a report that Stripe is considering an acquisition of all or parts of the company. However, another report said the company isn’t in talks to sell itself to Stripe or anyone else.
The recent stock slump is said to have sparked the interest of some potential acquirers.
Read what analysts have to say here.
For the midcap stocks, Baldwin Insurance Group (BWIN) (+40.53% W/W to $23.23) and Sezzle (SEZL) (+16.25% W/W to $72.95) were among the significant gainers. Both companies posted Q4 earnings that exceeded the Street consensus.
SLM (SLM), having declined 17.08% from last week to close at $18.74, led the losers in the category
Jefferies Financial Group (JEF) followed. The stock slumped 16.87% to $44.40 after the company was sued by investors in one of its funds over losses related to its holdings in First Brands Group.
Additionally, Jefferies is said to have had an exposure of ~£100M to the failed UK firm MFS.
FS KKR Capital (FSK) (-16.73% to $10.80) and Banco Macro (BMA) (-16.35% W/W to $77.18). The two posted Q4 results this week, with FSK slashing dividend by ~30%.
In the smallcap category, PRA Group (PRAA), Goosehead Insurance (GSHD), and Walker & Dunlop (WD) were among the notable movers.