Wall Street Closes Mixed as Nvidia Shares Stand Out
The Dow Jones fell after a positive opening, following announcements from the European Union and Canada regarding their responses to U.S. tariffs on steel and aluminum.
Midweek trading saw mixed performances across Wall Street’s three major indexes. The Dow Jones Industrial Average, which includes 30 blue-chip stocks, declined by 0.20% to 41,350.93 points. The S&P 500, tracking the market’s most valuable companies, rose 0.49% to 5,599.30 points, while the Nasdaq Composite advanced 1.22% to 17,648.45 points.
Inflation Reaction
All three indexes initially surged following February’s U.S. inflation data, which came in below expectations. The lower figures fueled optimism that the Federal Reserve (Fed) might resume interest rate cuts.
Specifically, the Consumer Price Index (CPI) increased by 0.2% month-over-month in February, below the 0.3% consensus estimate. This brought the annual inflation rate down to 2.8%, compared to the anticipated 2.9%.
These figures provided temporary relief from inflation concerns, offering investors some optimism amid signs of price deceleration.
Tariffs and Market Volatility
However, the Dow Jones reversed course, and other indexes trimmed gains after the European Union and Canada announced retaliatory measures against the U.S. steel and aluminum tariffs that took effect early Wednesday.
The EU revealed plans to impose tariffs on $28 billion (€26 billion) worth of U.S. goods starting in April, while Canada announced a 25% tariff on over $20 billion in U.S. imports.
Markets tend to react faster than the Fed, and while the central bank may eventually adjust policy in response to growing economic risks, there remains significant room for market overreactions.
Sectors and Stocks
Sector-wise, consumer staples (-2.10%) and healthcare (-1%) led the declines, while technology (+1.57%) posted strong gains. Within the Dow Jones, Nvidia surged 6.43%, leading the gainers alongside Boeing (+3.08%). On the losing side, Procter & Gamble fell 2.74%.
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