On Wednesday, the Nasdaq Composite rose as concerns about the economy eased due to a soft inflation report, leading investors to buy up beaten-up technology shares. The tech-heavy benchmark added 1.22%, closing at 17,648.45, while the S&P 500 gained 0.49% to end at 5,599.30. The Dow Jones Industrial Average slipped slightly to settle at 41,350.93.
Despite the tech sector being down more than 3% for the week, it bounced back on Wednesday, with Nvidia, AMD, Meta Platforms, and Tesla all seeing gains. The consumer price index increased by 0.2% for the month, with an annual inflation rate of 2.8%, lower than expected estimates, which could give the Fed more policy flexibility.
President Trump’s steel and aluminum tariffs took effect, leading Canada and the European Union to impose retaliatory duties on U.S. goods. This, along with fears of escalating tensions triggering a U.S. recession, has led to pressure on stocks. Concerns about Trump’s trade policy raising inflation and slowing growth, known as stagflation, have contributed to recent sell-offs.
This week has seen significant drops in the Dow, S&P 500, and Nasdaq, with the S&P 500 briefly entering correction territory on Tuesday. Despite the current market pullback, some analysts believe that once the key fiscal policy changes are resolved, there may be better news ahead for the market.
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