Wall Street Steady After Trade and Inflation News/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks held onto early-week gains Wednesday as Wall Street reacted to easing trade tensions between the U.S. and China. A recent slowdown in inflation added to investor optimism, though caution remains amid ongoing tariff uncertainty. Tech stocks led the way, while consumer and industrial names faced pressure.
Market Snapshot Quick Looks
- S&P 500 hovered near unchanged after early trading
- Dow Jones up 52 points; Nasdaq climbed 0.5%
- Tech sector gains buoyed markets midweek
- Super Micro surged 12.7% on Saudi DataVolt deal
- AMD jumped 6% on $6B stock buyback news
- Inflation showed signs of easing in April report
- Retail sales and wholesale inflation updates due Thursday
- American Eagle dropped 6.1% after pulling forecast
- 90% of S&P 500 firms have reported earnings
- First-quarter GDP shrank 0.3% as tariffs weighed
Deep Look: Wall Street Wavers as Tech Gains Offset Tariff Uncertainty
NEW YORK — U.S. markets showed signs of cautious optimism on Wednesday, as stocks fluctuated but largely held gains earned earlier in the week following a 90-day U.S.-China trade ceasefire. Though volatility persists, investors welcomed cooling inflation data and rebounding tech stocks.
Indices Overview
After the opening bell, the S&P 500 fluctuated between small gains and losses, showing little change after an hour of trading. The Dow Jones Industrial Average rose 52 points (0.1%) by 10:02 a.m. Eastern, while the Nasdaq Composite climbed 0.5%, boosted by renewed interest in the technology sector.
Tech Stocks Rally
Technology stocks led the market’s modest momentum:
- Super Micro Computer surged 12.7% after sealing a strategic partnership with Saudi-based data infrastructure company DataVolt.
- Advanced Micro Devices (AMD) saw its shares rise 6% following the announcement of a $6 billion stock buyback plan.
These gains helped support a broader market that remains cautious due to ongoing economic and geopolitical risks.
Trade War Truce Fuels Early-Week Rally
Markets surged Monday after the U.S. and China agreed to pause their escalating trade war for 90 days, allowing time for renewed negotiations. That momentum spilled into Tuesday, bolstered by a surprising dip in consumer inflation for April.
Still, uncertainty looms as many of President Donald Trump’s more severe tariffs remain active. Businesses face challenges planning ahead amid the on-again, off-again nature of trade policies, and consumers remain wary of future price hikes.
Earnings and Economic Outlook
Although over 90% of companies in the S&P 500 have now reported quarterly earnings — with most beating analyst expectations — forecasts for future growth have been sharply cut. For many firms, macroeconomic conditions and unpredictable policy remain significant headwinds.
Retailer American Eagle slumped 6.1% after it pulled its financial guidance, citing “macro uncertainty.” A broader swath of major companies, including General Motors, UPS, Kraft Heinz, and JetBlue, have issued similar warnings about tariffs and economic instability.
The U.S. economy contracted by 0.3% in Q1 as companies and consumers raced to stockpile goods before additional tariffs took effect.
Eyes on Inflation and Retail Data
Investors are now bracing for two major data releases on Thursday:
- Producer Price Index (PPI): Measures wholesale-level inflation, offering insight into what businesses are paying for goods.
- Retail Sales: Forecasts show a potential sharp slowdown to 0.2% growth in April, down from 1.4% the previous month.
Retail giant Walmart will also release quarterly results, with close attention paid to its outlook amid inflationary pressure and shifting consumer behavior.
Bond Market Stable, Global Markets Mixed
In the bond market, Treasury yields remained stable. The 10-year Treasury yield edged up slightly to 4.49% from 4.47% the previous day.
International markets saw mixed results:
- Asian markets broadly rose as optimism over the trade truce spread
- European indexes showed mixed signals, reflecting investor caution as the week progresses
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