U.S. stocks tumbled on Friday to suffer their worst week of 2025 as a negative mix of news related to tariffs, inflation and the economy worried traders.
For the week, the S&P 500 fell about 1.7%, while the Dow Jones Industrial Average and tech-heavy Nasdaq Composite both lost 2.5%.
Source: Investing.com
The week ahead is expected to be another busy one as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings.
Most important on the economic calendar will be Friday’s core PCE price index, which is the Fed's favorite inflation gauge. That will be accompanied by a heavy slate of Fed speakers, including district governors Tom Barkin, Raphael Bostic, Patrick Harker, and Michelle Bowman all set to make public appearances.
Source: Investing.com
Elsewhere, in corporate earnings, Nvidia (NASDAQ:NVDA)'s results will be the key update of the week as the Q4 reporting season quiets down. Other notable names lined up to report earnings include Salesforce (NYSE:CRM), Snowflake (NYSE:SNOW), C3.AI (NYSE:AI), Tempus AI (NASDAQ:TEM), Dell Technologies (NYSE:DELL), Home Depot (NYSE:HD), Lowe’s Companies (NYSE:LOW), TJX Companies (NYSE:TJX), Macy’s (NYSE:M), and Hims Hers Health (NYSE:HIMS).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, February 24 - Friday, February 28.
Stock to Buy: Nvidia
Nvidia stands out as a compelling buy this week, as the undisputed leader in artificial intelligence (AI) semiconductors is poised to deliver another blockbuster earnings report after Wednesday’s market close at 4:20PM ET. A call with CEO Jensen Huang is set for 5:00PM ET.
Market participants expect a sizable swing in NVDA shares following the print, as per the options market, with a possible implied move of 9.2% in either direction. Analyst sentiment is overwhelmingly bullish, as evidenced by 33 upward earnings revisions in the past 90 days, according to InvestingPro.
Source: InvestingPro
Wall Street sees Nvidia earning $0.85 per share, rising 67% from EPS of $0.51 in the year-ago period. Meanwhile, revenue is forecast to surge 72% annually to $38.1 billion, underscoring the company’s unmatched dominance in the AI chip market.
A key focus will be the demand for Nvidia’s Blackwell processors, particularly among hyperscale cloud computing providers, which continues to drive growth in its AI segment.
Despite concerns that major customers might develop their own AI chips and the emergence of China’s low-cost DeepSeek AI computing system, the recent announcement from DeepSeek regarding its latest AI product has actually spurred demand for Nvidia’s H20 GPUs in China.
Looking ahead, Nvidia is expected to guide conservatively yet moderately above consensus, reinforcing confidence in its long-term growth trajectory.
Source: Investing.com
NVDA stock ended Friday’s session at $134.43, about 12% below its record high of $153.13 reached on January 7. At current levels, Nvidia has a market cap of $3.31 trillion, making it the second most valuable company trading on the U.S. stock exchange after Apple (NASDAQ:AAPL). Shares are up 0.1% in 2025.
InvestingPro's AI-powered quantitative model rates Nvidia with a ‘GREAT’ Financial Health Score of 3.62, reflecting its robust operational performance and market leadership.
In contrast, Lowe’s is set for a challenging week ahead as the home improvement retailer prepares to release its Q4 update before the market opens on Tuesday at 6:00 AM ET. According to the options market, traders are pricing in a swing of 5.4% in either direction for LOW stock following the print.
Market expectations are muted, with Wall Street forecasting earnings of $1.84 per share—a modest 4% increase from $1.77 per share in the prior year—amid higher cost pressures and declining operating margins. Revenue is expected to decline by 1.7% annually to approximately $18.3 billion, reflecting soft consumer demand and operational challenges.
Given these headwinds, it is anticipated that Lowe’s executives will deliver a cautious outlook for the current quarter, likely dampening investor sentiment further.
Source: Investing.com
LOW stock closed at $239.17 on Friday, the lowest level since August 20, 2024. At its current valuation, the Mooresville, North Carolina-based company has a market cap of $135 billion. Shares, which are trading below their key moving averages, are down 3.1% to start the new year.
It is worth mentioning that the current InvestingPro Fair Value analysis suggests the stock may be overvalued, with a -20.0% downside from its current price to a calculated fair value of $191.30.
Additionally, Lowe’s maintains a below-average InvestingPro Financial Health Score of 2.4 out of 5.0, reflecting concerns about weak revenue performance and slowing growth prospects.
Source: InvestingPro
The second-largest U.S. home improvement retailer has struggled with weakening consumer demand trends and an uncertain fundamental outlook. Budget-conscious shoppers are spending less on do-it-yourself (DIY) projects as households prioritize essentials over big-ticket projects.
Margin pressures and rising supply chain costs compound the pain as aggressive promotions by competitors like Home Depot are squeezing profitability.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies' financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
