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%. Despite tech stocks being down for the week, they bounced back on Wednesday, with companies like Nvidia, AMD, Meta Platforms, and Tesla seeing gains. The consumer price index showed a 0.2% increase, putting the annual inflation rate at 2.8%, which was lower than expected. This prompted optimism about Fed policy flexibility. Trump’s steel and aluminum tariffs went into effect, leading to retaliatory actions from Canada and the European Union, raising concerns about a U.S. recession. The Dow, S&P 500, and Nasdaq all dropped around 3% in the past week, with the S&P 500 briefly entering correction territory. Despite the recent sell-off, there is optimism for better news once the market navigates through the current challenges. The recent market volatility is partly attributed to fears of stagflation caused by Trump’s trade policy. Overall, while the market has been under pressure, there is hope for positive changes in the future as fiscal policy evolves.
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