Wall Street opened on a stronger footing Wednesday after an inflation report showed price pressures are dropping more than expected. The S&P 500 rose 1.2% in early trading, bouncing back from recent losses that had pushed it more than 10% below its record high from last month.
According to Yahoo Finance data, the Dow Jones Industrial Average climbed 145 points, or 0.4%. At the same time, the Nasdaq composite led the gains, buoyed by a rebound in artificial intelligence equities, which surged 2% in the last day.
Tech companies count the most gains in stock market uptrend
Tech companies led the market recovery, having reversed some of their steep declines from recent weeks. Nvidia shook off the pressure of concerns over its valuation to go up by 5.45%, trimming its year-to-date losses to 11.3%.
Super Micro Computer, a server manufacturer closely tied to AI demand, rallied 6%. Other companies like GE Vernova, which supplies power infrastructure for AI data centers, also saw its stock rise 4.6%.
Elon Musk’s car manufacturer company, Tesla, also saw a 6.65% stock price uptick as it sought to recover from a prolonged sell-off that had wiped out more than half of its value since mid-December. The equity is on track for its first daily back-to-back gains in a month, pending any negative changes within the day.
Gasoline prices decline, gold still around recent highs
The Bureau of Labor Statistics released inflation data Wednesday, showing that the core Consumer Price Index (CPI), which excludes volatile food and energy prices, rose 3.1% in February. The figure represents a slowdown from January’s 3.3% increase and was the lowest annual core CPI reading since April 2021.
Gasoline prices contributed to the easing inflation, with the gasoline index falling 1% in February after rising 1.8% the previous month. On an annualized basis, gas prices declined by 3.1%. The national average price of gasoline stood at $3.08 per gallon on Wednesday, about seven cents lower than a month ago, according to AAA.
Still, despite the drop in gasoline prices, the broader energy index still rose 0.2% for the month as electricity and natural gas prices increased.
In currency markets, the US dollar index rose 0.41% to 103.7169, while Gold spot prices counted gains that have made it shoot up 11.09% since the start of 2025.
Wall Street still unhappy with Trump’s trade policies
The stock market has rallied on easing inflation data, but President Donald Trump’s unpredictable tariff policy could turn the short-term gains into more losses soon. Markets had been rattled in recent weeks by a series of on-again, off-again tariff announcements from the White House.
On Tuesday, Trump declared plans to double tariffs on Canadian steel and aluminum, only to reverse the decision later in the day after a Canadian province agreed to drop retaliatory measures. Yet, the administration followed through on imposing a 25% tariff on steel and aluminum imports today, which could encourage retaliation from America’s neighbors.
“I’m going to say this at the risk of my job. What President Trump is doing is insane. It is absolutely insane…It seems this administration is doing everything it can to chase foreign capital away,” said CNBC’s financial markets correspondent Steve Liesman.
“I’m going to say this at the risk of my job. What President Trump is doing is insane. It is absolutely insane.”
CNBC’s Steve Liesman goes off on Trump’s reckless trade wars. pic.twitter.com/mldxXYjln3
— Republicans against Trump (@RpsAgainstTrump) March 12, 2025
According to the Associated Press, the European Union has responded to Trump’s tariffs by directing levies to US exports, including motorcycles, bourbon, and steel.
Trump insists on his desire to bring manufacturing jobs back to the United States while also advocating for a smaller federal workforce and increased deportations. But his trade policies could make consumers spend less, worried about the effects the current administration’s choices will have on the coming months.
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