The Nasdaq Composite rose on Wednesday after a softer-than-expected inflation report eased concerns about the economy, with tech shares bouncing back. The tech-heavy benchmark gained 1.22%, closing at 17,648.45. The S&P 500 also increased by 0.49% to end at 5,599.30, while the Dow Jones Industrial Average slipped slightly. Despite the tech sector being down for the week, tech stocks like Nvidia, AMD, Meta Platforms, and Tesla saw gains on Wednesday.
The consumer price index showed a 0.2% increase for the month, lower than expectations, calming fears of high inflation. According to Dave Grecsek from Aspiriant Wealth Management, this could give the Federal Reserve more policy flexibility. President Trump’s tariffs on steel and aluminum took effect on Wednesday, prompting retaliatory measures from Canada and the EU, raising concerns about a potential U.S. recession.
The stock market has been under pressure due to fears of escalating trade tensions leading to stagflation. The Dow, S&P 500, and Nasdaq have all seen significant drops recently, with the S&P 500 briefly entering correction territory. However, experts like Grecsek believe that after weathering these initial challenges, there is better news ahead for the market. Ultimately, the market is expected to correct after strong performances over the last two years, with hopes that key fiscal policy changes will bring positive outcomes in the future.
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