In today's trading session, US benchmark equity indexes experienced notable gains, largely attributed to the latest consumer inflation data, which decelerated more than anticipated in February. The Nasdaq Composite saw an impressive rise, climbing 1.5% to reach 17,695 by midday Wednesday. Following closely, the S&P 500 also recorded a gain of 0.9%, closing at 5,619.5, while the Dow Jones Industrial Average increased modestly by 0.2%, landing at 41,523.5.
Among the sectors, technology stocks led the rally, showcasing their resilience and growth potential, while consumer staples faced the most significant downturn. As for economic indicators, the US consumer price index (CPI) demonstrated an incremental growth of 0.2% month-on-month and 2.8% year-on-year for the previous month.
These results fell short of the consensus forecasts compiled by Bloomberg, which anticipated growth rates of 0.3% and 2.9%, respectively. Analysts are interpreting this CPI report as a positive sign. BMO commented, "This was a well-behaved CPI inflation report that will raise expectations for an even tamer core (personal consumption expenditures) inflation print later this month." This sentiment is expected to ease market concerns about persistent inflation pressures, particularly in light of upcoming tariffs on goods imports. Looking ahead, the official producer price report for February is on schedule to be released this Thursday, which will further inform market perspectives. In housing news, mortgage applications in the US have risen for the second consecutive week, buoyed by a decrease in home financing rates that has spurred refinancing activities, as reported by the Mortgage Bankers Association. Moreover, US Treasury yields experienced a jump during the trading day, with the two-year yield increasing by 3.9 basis points to 3.98% and the ten-year yield climbing 1.3 basis points to 4.30%. On the international trade front, Canada has announced a 25% retaliatory tariff on over $20 billion worth of US imports, effective Thursday, according to reports from CNBC citing Canadian Finance Minister Dominic LeBlanc.
Similarly, the European Union indicated plans to impose counter-tariffs on US goods valued up to 26 billion euros ($28.35 billion) starting next month, further escalating trade tensions. In the commodities market, West Texas Intermediate crude oil prices surged by 2.3% to $67.77 per barrel during intraday trading, reflecting ongoing volatility in energy markets. Regarding company performances, Nvidia made headlines as its shares surged by 6.7%, positioning it as the leading gainer on the Dow and a strong performer on the S&P 500.
In a parallel success story, Tesla saw its shares increase by 8.3%, marking one of the best performances on both the S&P 500 and Nasdaq indices. Other tech giants such as Microsoft, Alphabet, Meta Platforms, and Amazon.com also experienced upward momentum, signifying a bullish trend in major tech stocks.
Contrastingly, Apple faced a setback, with shares declining by 1.8%, placing it among the poorest performers on the Dow. In strategic growth news, Salesforce announced a significant investment plan of $1 billion aimed at enhancing Singapore's digital transformation and accelerating the rollout of its new artificial intelligence platform, Agentforce.
This positive outlook saw Salesforce shares rise by 2.7%, earning it the title of the second-best performer on the Dow. On the downside, United Airlines encountered challenges, suffering a decline of 4.2% on the S&P 500, as major financial institutions such as BofA Securities, TD Cowen, and Barclays revised their price targets for the airline's stock downwards. Finally, on the commodities front, gold prices saw an uptick of 0.9%, reaching $2,947.1 per troy ounce, while silver experienced a rise of 1.9%, trading at $33.77 per ounce..