The Nasdaq Composite rose on Wednesday as a soft inflation report eased concerns about the economy, with the tech-heavy benchmark gaining 1.22%. The S&P 500 also increased by 0.49%, while the Dow Jones Industrial Average slipped slightly. Despite the tech sector being down more than 3% for the week, tech stocks bounced back on Wednesday, with Nvidia, AMD, Meta Platforms, and Tesla all posting gains.
The consumer price index showed a 0.2% increase for the month, with the annual inflation rate at 2.8%, lower than expected. Core CPI, which excludes food and energy prices, also rose below expectations. This led experts to believe that the Federal Reserve may have more flexibility in responding to economic conditions.
President Trump’s steel and aluminum tariffs went into effect, leading to retaliatory duties from Canada and the European Union. Trade tensions have caused fears of a U.S. recession, with concerns that Trump’s trade policy may lead to stagflation.
Stocks have been under pressure, with the Dow, S&P 500, and Nasdaq all seeing declines of around 3% this week. The S&P 500 briefly dipped into correction territory, down 10% from a record set in February. Despite the recent market turbulence, experts believe that there is better news to come once these key fiscal policy changes are settled.
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