Wall Street Today | S&P 500, Nasdaq snap 2-day losing streak on easing US inflation; Tesla jumps 7%: 5 key triggers | Stock Market News

Wall Street Today: The US stock market’s main indexes snapped their two-day losing streak driven by data showing cooling US inflation in February. After leaping to a big initial gain, US scrips were shaky mid-session, triggered by concerns of an escalating global trade war due to US President Donald Trump‘s tariffs. Wall Street majors Goldman Sachs lowered its year-end target for the S&P 500, while JP Morgan sees increasing odds of a US recession.

With today’s advance, the S&P 500 is 8.9 per cent below its all-time closing high reached less than a month ago. On Monday, the bellwether index dipped below its 200-day moving average, considered a significant support level, for the first time since November 2023. The index rose 0.5 per cent after skidding between an early gain of 1.3 per cent and a later loss. The unsettled trading comes after the index fell over 10 per cent below its all-time high last month.

Also Read: Goldman Sachs cuts S&P 500 year-end target to 6,200 dragged by dim US economic outlook over Trump tariffs

US stocks under pressure for third straight session— Five key factors that drove Wall Street today:
 

1.US inflation data

Wednesday’s US Department of Labor data showed the consumer price index (CPI) rose 2.8 per cent annually in February, below the 2.9 per cent forecast from economists polled by Reuters. On a monthly basis, it rose 0.2 per cent after accelerating by 0.5 per cent in January. The positive inflation data drove Wall Street higher to a strong opening on Wednesday. However, indices soon shed gains over economic concerns triggered by US tariffs and the global trade war. US tech giants, including Intel, Nvidia, and Tesla, helped boost sentiments.

2.US benchmark indices today

On March 6, the tech-heavy Nasdaq dipped over 10 per cent below its record closing high reached on December 16, confirming it has been in a correction since then. The S&P 500 gained 27.23 points, or 0.49 per cent, to 5,599.30, and the Nasdaq Composite gained 212.36 points, or 1.22 per cent, to 17,648.45, rebounding from six-month lows. The Dow Jones Industrial Average swung between a rise of 287 points and a drop of 423. It ended with a loss of 82 points, or 0.2 per cent.
 

Also Read: Global markets today: What’s behind the US stock market’s 2-day slide? EXPLAINED with 5 key factors

3.US tech giants drive Nasdaq

The Nasdaq was much better because of gains for Nvidia, Tesla and AI-related companies. Nvidia climbed six per cent to trim its loss for the year to 14.9 per cent and logged its best day in six weeks. Server-maker Super Micro Computer rallied 4.2 per cent, and GE Vernova, which is helping to power AI data centres, rose 4.3 per cent. Elon Musk’s Tesla, whose price had more than halved since mid-December, rose 7.6 per cent to log its best day in two months. 

Intel shares surged 12 per cent in after-hours trading after the chipmaker named former board member Lip-Bu Tan as its new CEO. A report said TSMC had pitched Nvidia, Advanced Micro Devices, and Broadcom about taking a stake in a joint venture to operate the US chip factories. Tech shares led the gainers among 11 major sectors in the S&P 500, while consumer staples and healthcare were the laggards.

Traders held on to bets that the US Federal Reserve will proceed with a 25-basis-point interest-rate cut in June. The central bank is widely expected to maintain current borrowing rates at its meeting next week. For the US Fed, an economic slump would usually be met with lower interest rates. Investors were still wary of US trade policy and the impact that could have on inflation going forward.

“There are reasons for the US Fed to be optimistic here – January’s seasonal blip has faded, and core services have a solid cooling. Supercore inflation is back below four per cent for the first time since early last year. It’s a good sign that the disinflationary process was well on track last month,” said Kyle Chapman, FX Markets Analyst at Ballinger Group.

Also Read: US Fed chair Jerome Powell signals rate pause over tariff-led economic uncertainty, ‘dot plot’ tweak likely ahead

“But the future is what really matters for policymakers – not what happened last month. There is too much uncertainty on the US Fed’s plate to be able to make decisions based on the outlook, and without a sudden softening in the hard data, they will want to see some of this uncertainty resolved before they feel confident in moving rates lower,” added Chapman.

5.World markets, commodities, bonds

In the bond market, Treasury yields increased to regain losses from recent months sparked by worries about the US economy’s strength. The 10-year Treasury rose to 4.31 per cent from 4.28 per cent on Tuesday and from 4.16 per cent at the start of last week. In stock markets abroad, indexes rose across much of Europe following mixed sessions in Asia. MSCI’s gauge of stocks across the globe rose 4.08 points, or 0.49 per cent, to 830.72 after rising earlier to 834.73

The pan-European STOXX 600 index earlier closed up 0.81 per cent after four straight sessions of declines on optimism around a potential Ukraine-Russia ceasefire and cooler-than-expected US inflation report. Safe-haven gold rose, aided by tariff uncertainty and the cooler US inflation report. Spot gold rose 0.53 per cent to $2,931.59 an ounce. US gold futures rose 0.74 per cent to $2,934.40 an ounce.
 

Also Read: How will Donald Trump’s tariff policy dictate Wall Street and global markets? EXPLAINED
 

Wall Street rebounds from six-month lows: What should global investors do now?

Wall Street analysts believe the landscape is rapidly evolving for US and global market investors. Interest rate-sensitive sectors like technology, housing, and consumer discretionary stocks stand to gain as borrowing costs fall.

“A well-telegraphed rate cut cycle would provide a cushion against potential shocks while ensuring that inflation expectations remain anchored. Fixed-income investors should prepare for a potential bond rally, particularly in longer-duration assets that benefit from a Fed pivot,” said Nigel Green, CEO of deVere Group.

“Currency markets could see renewed pressure on the dollar as rate differentials shift, making emerging market assets more attractive. Commodities, too, could see increased volatility. Oil and industrial metals may respond to shifting demand expectations, particularly if trade tensions escalate,” added Green.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.