Track Markets Live NowIn a tumultuous trading session on Thursday, March 13, 2025, major U.S. stock indexes closed lower as ongoing concerns about global trade tensions overshadowed earlier optimism from cooler-than-expected inflation data. The day’s events highlighted the delicate balance between economic indicators and geopolitical factors influencing investor sentiment.
Market Performance
The three major U.S. stock indexes ended the day in negative territory:
– The S&P 500 fell 1.54% to 5,513.30, down 86.00 points.
– The Dow Jones Industrial Average (DJIA) dropped 1.55% to 40,707.99, shedding 642.94 points.
– The Nasdaq Composite declined 2.09% to 17,279.57, losing 368.88 points.
This downturn came after a brief rally on Wednesday, sparked by encouraging inflation data. However, the positive momentum was short-lived as trade war concerns resurfaced.
Inflation Data and Market Reaction
The U.S. Department of Labor reported that the Consumer Price Index (CPI) increased by 0.2% in February on a seasonally adjusted basis, following a 0.5% rise in January. The core CPI, which excludes volatile food and energy prices, also rose by 0.2% in February, down from a 0.4% increase in January.
However, the market’s positive reaction to the inflation data was quickly overshadowed by renewed concerns about global trade tensions. President Donald Trump’s threats to escalate tariffs on European Union goods if the EU proceeds with reciprocal tariffs on U.S. products reignited fears of a broader trade conflict.
Sector Performance and Notable Stocks
The technology sector, which had led Wednesday’s brief rally, experienced a pullback on Thursday. However, some tech stocks managed to buck the trend:
– NVIDIA Corporation (NVDA) rose 6.4%
– Broadcom Inc. (AVGO) gained 2.2%
– Intel Corporation (INTC) surged 13.71% to $23.52, following the announcement of a new CEO
On the downside, several stocks faced significant pressure:
– Adobe Inc. (ADBE) plummeted 13.42% to $379.74 after weak earnings results
– UiPath Inc. (PATH) dropped 14.54% to $10.11
– RH (RH) declined 10.43% to $215.89
Commodities and Currencies
The uncertainty in equity markets led to movements in other asset classes:
– Gold continued its upward trajectory, rising 1.60% to $2,993.90 per ounce, approaching its record high of $2,956.15 set on February 24, 2025.
– Crude oil prices fell, with WTI crude declining 1.79% to $66.47 per barrel.
– In the currency markets, the Japanese yen strengthened by about 0.3% against the U.S. dollar, reaching 147.83 yen per dollar, as investors sought safe-haven assets.
Looking Ahead: Upcoming Market Events
Investors will be closely watching several key events in the coming days:
1. U.S. Producer Price Index (PPI) data, scheduled for release later today, which could provide further insights into inflationary pressures.
2. Ongoing developments in the global trade situation, particularly any new announcements regarding tariffs.
3. The German parliament’s special session to debate a 500 billion euro infrastructure fund and changes to borrowing rules, which could impact European markets.
As market volatility persists, analysts advise caution. Michael Brown, senior research strategist at Pepperstone, noted, “This still strikes me as a market that simply cannot hold onto any gains at the moment, which should be a big old red flag for any potential dip buyers out there.”
In conclusion, while the recent inflation data provided a momentary respite, the overarching concerns about global trade tensions continue to dominate market sentiment. Investors remain on edge, balancing the potential for economic growth against the uncertainties posed by ongoing geopolitical tensions and policy decisions.