Stock indexes rise as US consumer prices slow, impacting various sectors

From Nasdaq: 2025-03-12 12:27:51

The S&P 500 Index is up +0.79%, Dow Jones is down -0.02%, and Nasdaq 100 is up +1.54%. Stock indexes are recovering from recent losses due to slower inflation growth. Magnificent Seven stocks and chip stocks are rallying, but Verizon is down -4%. President Trump’s tariff plans impact US and EU trade relations.

US CPI rose less than expected at +0.2% m/m and +2.8% y/y. Mortgage applications rose +11.2%, and average 30-year fixed rate mortgage fell to 3-month low. Markets fear US tariffs will harm growth and earnings. Congress faces deadline for spending bill to avoid shutdown. FOMC meeting sees 1% chance of rate cut.

Overseas markets are mixed, with Euro Stoxx 50 up +1.28%. Interest rates are affected by US CPI and stock rebound. ECB officials discuss lowering interest rates sooner. US stock movers include Tesla, Nvidia, and Meta Platforms up over 4%. Chip stocks like Micron Technology and ARM Holdings Plc are also climbing.

Groupon forecasts revenue above consensus, Talen Energy gets overweight rating, and Myriad Genetics receives upgrade. Crox Inc upgraded by Loop Capital Markets. Airline stocks like United Airlines Holdings and iRobot are down. Verizon Communications leads losses in telecommunication stocks. PepsiCo downgraded by Jeffries. Earnings reports for Adobe Inc, Crown Castle Inc, SentinelOne Inc, and UiPath Inc are expected.



Read more at Nasdaq: Stocks Rally as US Consumer Prices Cool