The U.S. stock market rose on Wednesday after encouraging inflation data provided some relief, even as the ongoing trade war continued to create volatility and weigh on stocks. The S&P 500 gained 0.5%, fluctuating between an early gain of 1.3% and a later loss. The Dow Jones Industrial Average also experienced sharp swings, moving between a rise of 287 points and a drop of 423 points, ultimately ending with a loss of 82 points, or 0.2%.
The Nasdaq composite climbed 1.2%. The inflation report showed that overall prices for U.S. consumers rose less than economists had expected last month. This positive surprise helped companies linked to technology and artificial intelligence lead the way.
Intel climbed 6.4%, trimming its loss for the year so far to 13.8%. Server-maker Super Micro Computer rose 4%, and GE Vernova, which powers AI data centers, gained 5.1%. Despite the relief from inflation data, the trade war continued to impact the market.
Stock market reacts to February inflation
Businesses that could be substantially affected by tariffs saw declines. Brown-Forman, the company behind Jack Daniel’s whiskey, fell by 5.1%, and Harley-Davidson sank 5.7%.
U.S. bourbon and motorcycles are among the products targeted by newly announced tariffs from overseas in retaliation to U.S. tariffs implemented earlier by the Trump administration. European Union President Ursula von der Leyen expressed her regret over the imposition of tariffs, stating, “Tariffs are taxes. They are bad for business and worse for consumers.”
The uncertainty surrounding trade policies continues to create an uneasy market environment, potentially causing households and businesses to pull back on spending, which could harm the economy.
Delta Air Lines saw a drop of 3%, piling onto its 7.3% decline from the previous day after the airline noted weakening demand for near-term bookings. On a more positive note, Casey’s General Stores reported stronger-than-expected profit and revenue for the latest quarter, attributing part of its success to robust sales of hot sandwiches and fuel. The Ankeny, Iowa-based company, which operates nearly 2,900 convenience stores in 20 states, maintained its revenue forecast for the upcoming year, and its stock rose by 6.2%.
All told, the S&P 500 closed at 5,599.30 after rising 27.23 points. The Dow Jones Industrial Average fell 82.55 points to 41,350.93, while the Nasdaq continued its positive trajectory.
