The Nasdaq Composite rose on Wednesday as a soft inflation report eased concerns about the economy, with the tech-heavy benchmark gaining 1.22% and closing at 17,648.45. The S&P 500 also rose by 0.49% to end at 5,599.30, while the Dow Jones Industrial Average slipped by 0.2%. The tech sector, which had been down more than 3% for the week, bounced back with gains from companies like Nvidia, AMD, Meta Platforms, and Tesla. The consumer price index increased 0.2% for the month, putting the annual inflation rate at 2.8%, lower than expected. This led to optimism that the Fed would have more policy flexibility if the economy weakens.
President Donald Trump’s steel and aluminum tariffs went into effect, sparking retaliatory tariffs from Canada and the European Union. This has contributed to fears of an escalating trade war triggering a U.S. recession, causing the recent sell-off in the stock market. This week alone, the Dow, S&P 500, and Nasdaq have all dropped around 3%. The S&P 500 briefly entered correction territory on Tuesday, down 10% from its February record. Despite the recent market pullback, analysts remain optimistic that there is better news to come once the challenges posed by trade tensions are navigated.
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