Nasdaq Leads Market Gains as Inflation Data Slows, Trade Tensions Persist

The Nasdaq surged 1.2%, driven by strong semiconductor and software stocks, while concerns over new trade tariffs and the bond market's volatility limited broader optimism. Inflation data showed slower-than-expected growth.

The tech-heavy Nasdaq led the way higher, jumping 212.35 points (1.2%) to 17,648.45. The S&P 500 also climbed 27.23 points (0.5%) to 5,599.30, although the narrower Dow bucked the uptrend and dipped 82.55 points (0.2%) to 41,350.93.

The Labor Department said its consumer price index crept up by 0.2% in February after climbing by 0.5% in January. Excluding food and energy prices, the core consumer price index also rose by 0.2% in February following a 0.4% increase in January. Core prices were also expected to climb by 0.3%. The report also said the annual rate of consumer price growth slowed to 2.8% in February from 3% in January.

The annual rate of core consumer price growth also slowed to 3.1% in February from 3.3% in January. Core price growth was expected to dip to 3.2%. The tamer-than-expected inflation data led to some optimism about the Federal Reserve resuming interest rate cuts in the near future. Buying interest was somewhat subdued, however, as concerns about the impact of new trade policies continue to weigh on the markets.

With new U.S. steel and aluminum imports taking effect today, the European Union said it would impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods beginning next month. Canada has also announced it will impose 25% tariffs on more than $20 billion worth of U.S. goods in retaliation for the steel and aluminum duties

Semiconductor stocks were substantially strong amid a surge by NVIDIAs shares, with the Philadelphia Semiconductor Index jumping by 2.5%. Software stocks were significantly strong , as reflected by the 1.5% gain posted by the Dow Jones U.S. Software Index. Banking and networking stocks too saw some some strength while airline, telecom and pharmaceutical stocks showed notable moves to the downside.

Asia-Pacific stocks moved mostly lower. China's Shanghai Composite Index dipped by 0.2% and Hong Kong's Hang Seng Index slid by 0.8%, although Japan's Nikkei 225 Index bucked the downtrend and inched up by 0.1%. the major European markets moved to the upside on the day. While the German DAX Index surged by 1.6%, the French CAC 40 Index and the U.K.'s FTSE 100 Index climbed by 0.6% and 0.5%, respectively.

In the bond market, treasuries moved to the downside over the course of the session after seeing early volatility. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3 bps to 4.31%.

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