Stocks Rise After CPI Surprise as Trade Risks Loom: Markets Wrap
- US inflation comes in lower than forecast by economists
- Bonds slip as tariff worries overshadow cooler inflation data
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Cooler-than-forecast February inflation pushed stocks higher after two days of heavy losses. A kneejerk rally in bonds quickly reversed and yields rose across the curve amid concerns over an escalating trade war.
Equities advanced after a selloff that put the S&P 500 on the verge of a technical correction. The bounce was led by tech megacaps, which got heavily hit during the recent market rout. While the surprise slowdown in consumer prices brought a degree of relief to traders, several voices on Wall Street saw the data as the “calm before the storm” given the uncertainties around the potential impacts of tariffs on the economy.