The US markets ended mostly higher, as investors took some support with Labor Department report showing consumer prices in the U.S. increased by slightly less than expected in the month of February. The Labor Department said its consumer price index crept up by 0.2 percent in February after climbing by 0.5 percent in January. Street had expected consumer prices to rise by 0.3 percent. Excluding food and energy prices, the core consumer price index also rose by 0.2 percent in February following a 0.4 percent increase in January. Core prices were also expected to climb by 0.3 percent. The report also said the annual rate of consumer price growth slowed to 2.8 percent in February from 3.0 percent in January. Street had expected the pace of price growth to edge down to 2.9 percent. The annual rate of core consumer price growth also slowed to 3.1 percent in February from 3.3 percent in January. Core price growth was expected to dip to 3.2 percent. The tamer-than-expected inflation data led to some optimism about the Federal Reserve resuming interest rate cuts in the near future.
However, some gains remained capped 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 percent tariffs on more than $20 billion worth of U.S. goods in retaliation for the steel and aluminum duties. On the sectoral front, semiconductor stocks saw substantial strength amid a surge by shares of Nvidia (NVDA), with the Philadelphia Semiconductor Index jumping by 2.5 percent after ending the previous session at a nearly eleven-month closing low.
Nasdaq increased 212.36 points or 1.22 percent to 17,648.45 and S&P 500 was up by 27.23 points or 0.49 percent to 5,599.3, while Dow Jones Industrial Average decreased 82.55 points or 0.2 percent to 41,350.93.
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