| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 41350.93 | -82.55 | -0.20% |
| S&P 500 | 5599.3 | 27.23 | 0.49% |
| Nasdaq | 17648.45 | 212.35 | 1.22% |
| VIX | 24.23 | -2.69 | -9.99% |
| Gold | 2943.2 | -3.6 | -0.12% |
| Oil | 67.72 | 0.04 | 0.06% |
US MARKET
The S&P 500 closed 0.5% higher on Wednesday, while the Nasdaq 100 rose 1.1%, fuelled by a softer-than-expected inflation report that eased economic worries and sparked a rebound in battered tech stocks, ending two days of intense sell-offs. The Dow Jones, however, ended 82 points lower, pressured by a 2.6% drop in Walmart shares, which weighed on consumer staples. Despite a 3% decline in the tech sector for the week, key tech stocks like Nvidia (+6.4%), AMD (+4.1%), and Tesla (+7.3%) led the Nasdaq’s rally.
The Consumer Price Index rose 0.2% for the month, bringing the annual inflation rate to 2.8%, lower than forecasts and offering relief to investors. However, President Trump’s steel and aluminium tariffs took effect, prompting Canada to impose 25% retaliatory duties on over $20 billion worth of US goods. The European Union also quickly responded, announcing counter-tariffs on €26 billion worth of US imports, set to take effect in April.
Specifically on the CPI report, CPI increased 0.2% after a sharp 0.5% advance in January. The respite, driven in part by a drop in prices for cars and gas, may be short-lived. Economists anticipate that an escalating trade war will drive up prices on a variety of goods from food to clothing in the coming months, testing the resilience of consumers and the broader economy.
On that note, to quote Kathy Bostjancic, chief economist at Nationwide “while the CPI report is encouraging, it’s “old news” nonetheless. There’s no disinflation momentum right now. We are predicting a little bit of a bump up in the coming months because of tariffs.”
LOCAL MARKET
The S&P/ASX 200 Index fell 1.32% on Wednesday, closing at 7,786 to reach a seven-month low after US President Donald Trump ruled out exempting Australia from his 25% tariffs on aluminium and steel. These metals account for nearly $1 billion of Australia’s exports, raising concerns about economic fallout.
Heavyweight miners led the decline, with BHP Group (-1.8%), Rio Tinto (-1.8%), and Pilbara Minerals (-2.8%) all posting losses. Additionally, reports surfaced that Rio Tinto sold $9 billion in US investment-grade bonds on Tuesday to finance its large-scale acquisition of Arcadium Lithium (-1%). Broader market weakness extended to financial, healthcare, and technology stocks, with Commonwealth Bank (-1.4%), Pro Medicus (-0.4%), and Xero (-1.1%) also recording significant declines.