The US stock market showed an upward trend on Wednesday following reports of greater than expected reductions in inflation.
Tech Sector Leads Market Upswing
The tech sector spearheaded the market recovery, offsetting some of its recent declines. Nvidia shares rose by 5.45%, cutting year-to-date losses to 11.3%. Server manufacturer Super Micro Computer rallied 6%. AI-related companies like GE Vernova also experienced a stock increase by 4.6%. Tesla shares climbed 6.65% after a prolonged sell-off.
Gas Prices Fall, Gold Prices Remain High
Wednesday's data release indicated a 3.1% rise in core Consumer Price Index (CPI) in February, slowing from January's 3.3%, the lowest since April 2021. Gasoline prices fell by 1% in February, with a year-over-year decline of 3.1%. The US national average gasoline price was $3.08 per gallon. Meanwhile, the US dollar index increased by 0.41%, and gold prices have surged 11.09% since early 2025.
Stock Market and Trump's Trade Policies
Despite easing inflation, President Donald Trump's volatile tariff policy poses challenges in the short-term market gains. Trump initially announced plans to double tariffs on Canadian steel and aluminum but later reversed this decision. Today, a 25% tariff on steel and aluminum imports has been enforced, potentially provoking retaliatory actions. CNBC correspondent Steve Liesman criticized the administration's policy, suggesting it could deter foreign capital.
The US stock market demonstrated positive trends amid easing inflation. However, the uncertain trade policies continue to pose challenges.
