The Nasdaq Composite rose on Wednesday, driven by a soft inflation report that eased concerns about the economy. The tech-heavy benchmark gained 1.22%, closing at 17,648.45, while the S&P 500 rose by 0.49% to end at 5,599.30. On the other hand, the Dow Jones Industrial Average slipped 0.2% to settle at 41,350.93.
Despite a 3% decline in the tech sector, technology shares bounced back on Wednesday, leading the S&P 500 higher. Stocks like Nvidia, AMD, Meta Platforms, and Tesla saw gains. The consumer price index showed a 0.2% increase for the month, with an annual inflation rate of 2.8%, lower than expectations.
President Trump’s tariffs on steel and aluminum went into effect, prompting retaliatory duties from Canada and the EU, raising fears of a U.S. recession. Concerns about stagflation, triggered by Trump’s trade policy, have led to recent market sell-offs. The S&P 500 briefly entered correction territory, with losses over the past month seen across major indices.
Despite the recent market pullback, some analysts believe that there is better news to come once the uncertainties surrounding fiscal policy changes settle. Overall, the market correction was not unexpected, as U.S. equity markets had been strong for the past two years. Investors are cautiously monitoring the situation, hoping for a positive turn in the near future.
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