The U.S. stock market rose on Wednesday after encouraging inflation data provided some relief to investors. However, ongoing trade tensions continue to weigh on stocks. The S&P 500 gained 0.5% after fluctuating between an early gain of 1.3% and a later loss.
The Dow Jones Industrial Average also experienced significant volatility, swinging between a rise of 287 points and a drop of 423 points before closing down 82 points or 0.2%. The Nasdaq composite climbed 1.2%. The positive inflation report showed that overall prices for U.S. consumers increased less than economists had expected last month.
This news boosted several companies, especially in the technology sector. Shares of Apple surged 6.4%, server-maker Super Micro Computer rose 4%, and GE Vernova, a company involved in AI data centers, advanced 5.1%. Despite the gains in tech and other sectors, the impact of the trade war is still being felt.
stocks rise despite trade tensions
Companies sensitive to tariff changes were among the hardest hit. Brown-Forman, known for Jack Daniel’s whiskey, tumbled 5.1%, and Harley-Davidson sank 5.7% due to concerns over export tariffs imposed in retaliation against U.S. tariffs.
European Union President Ursula von der Leyen criticized the tariffs, saying, “Tariffs are taxes. They are bad for business, and worse for consumers.” The tariffs have increased uncertainty for companies, affecting their business decisions and customer behavior. Delta Air Lines, for example, dropped 3% following a 7.3% decline the previous day after reporting weakening demand for close-in bookings.
On a more positive note, Casey’s General Stores, based in Ankeny, Iowa, reported stronger-than-expected profit and revenue, attributing part of its success to robust sales of hot sandwiches and fuel. This buoyed its stock by 6.2%. Overall, the S&P 500 rose 27.23 points to 5,599.30.
The Dow Jones Industrial Average fell 82.55 points to 41,350.93, while the Nasdaq composite climbed 1.22% to close at 17,648.45.
