The latest updates from the US benchmark equity indexes indicate a predominantly positive closing on Wednesday, driven by newly released data which demonstrates a more significant deceleration in consumer inflation for February than analysts had anticipated. The Nasdaq Composite recorded an impressive rise of 1.2%, climbing to 17,648.5, while the S&P 500 saw a 0.5% increase, ending at 5,599.3.
Conversely, the Dow Jones Industrial Average experienced a slight decline of 0.2%, closing at 41,350.9. Within different sectors, technology emerged as the leader, while consumer staples suffered the largest downturn. In specific economic indicators, the US consumer price index registered a sequential increase of 0.2% and an annual growth rate of 2.8% last month.
This figure contrasts with a Bloomberg-complied consensus that estimated growth rates of 0.3% and 2.9%, respectively. The interpretation of this report was positive among market analysts, with BMO commenting that it signifies a manageable inflation scenario, likely resulting in heightened expectations for a subdued core inflation report (personal consumption expenditures) anticipated later this month.
This data is expected to ease market apprehensions regarding a resurgence in consumer inflation that could disrupt the Federal Reserve's objectives before anticipated new tariffs on imported goods come into effect. The official producer price report for February is set to be released on Thursday, adding further detail to the economic landscape. Market analysts widely predict that the Fed will maintain its benchmark lending rate at the current position during next week's meeting, a consensus supported by indicators from the CME FedWatch tool. On the trade policy front, Canada has announced the introduction of 25% retaliatory tariffs on more than $20 billion worth of US goods, effective from Thursday, as reported by CNBC, referencing Canadian Finance Minister Dominic LeBlanc.
Additionally, the European Union has indicated its intention to implement counter-tariffs impacting up to 26 billion euros (approximately $28.31 billion) worth of US goods starting next month, further complicating international trade relations. In terms of US Treasury yields, there was a marked increase, with the two-year yield climbing 5 basis points to reach 3.99%, while the 10-year yield rose by 2.8 basis points, hitting 4.32%. Focusing on corporate developments, shares of Nvidia ($NVDA) surged by 6.4%, making it the top gainer on the Dow and a leading performer on the S&P 500.
Meanwhile, Tesla ($TSLA) saw its shares increase by 7.6%, earning the title of best performer on the S&P 500. Other major technology players, including Microsoft ($MSFT), Alphabet ($GOOGL), Meta Platforms ($META), and Amazon.com ($AMZN), also concluded the trading session on a positive note. In contrast, Apple ($AAPL) faced a downturn of 1.8%, positioning it among the underperformers on the Dow. Salesforce ($CRM) announced a significant commitment of $1 billion investment in Singapore over the coming five years, aimed at expediting the nation’s digital transformation and promoting its new artificial intelligence platform, Agentforce.
This bold move resulted in a 2.7% increase in the company's shares, marking it as the third-best performer on the Dow. On the negativer side of the spectrum, United Airlines ($UAL) was listed among the steepest decliners on the S&P 500 with a drop of 4.7%, following adjusted price targets by key financial analysts, including BofA Securities, TD Cowen, and Barclays. In commodities, West Texas Intermediate crude oil experienced a gain of 2.1%, closing at $67.64 per barrel on Wednesday. The Organization of the Petroleum Exporting Countries (OPEC) reaffirmed its global oil demand forecasts for 2025 and 2026, despite recognizing increasing economic uncertainty associated with ongoing trade tensions. In other market movements, government data revealed that commercial crude stockpiles in the US witnessed a less-than-expected rise last week. In the precious metals segment, gold climbed by 0.7% to reach $2,940.30 per troy ounce, and silver increased by 1.7%, now priced at $33.70 per ounce..