Key takeout
The US major stock indexes were mixed after the latest consumer price inflation (CPI) data revealed an unexpected downtick in February inflation. However, economists predict that US tariff policies can contribute to price pressure over the coming months.
The S&P 500 added 0.5%, while the Nasdaq bouncing off 1.2%, bolstering it by outperformance in the technical department. The Dow closed the mid-week session 0.2% lower.
Tesla (TSLA) shares moved high in their second straight session, jumping 7.6% to notch the strongest performance of the S&P 500 shares on Wednesday. Tesla received a support show from President Donald Trump on Tuesday. President Donald Trump held a promotional event for electric vehicle (EV) manufacturers at the White House. However, analysts at Evercore and Guggenheim have lowered the price target for Tesla stock, citing concerns about the company’s autonomous driving ambitions and vehicle delivery capabilities.
The softer than expected CPI report helped to increase the various stocks in the technology sector. This helps tech companies fund their growth plans as lower inflation rates are suitable for reducing borrowing costs. Additionally, a report on the proposal by Taiwan Semiconductor Manufacturing Co. (TSM) founded a joint venture with US chip makers to operate Intel (INTC) Foundries, providing lifts to the semiconductor industry. Shares in memory and data storage provider Micron Technology (MU) rose 7.4%, while shares in AI Chip Behemoth Nvidia (NVDA) won 6.4%.
Palantir Technologies (PLTR) shares rose 7.2% after the Data Analytics software company revealed slates from new customers such as drugstore operators Walgreens (WBA) and Brewing Giant Heineken. These companies will join existing Palantir clients at the company’s AI (AI) event on Thursday. It aims to showcase how customers can leverage Palantir’s AI platform.
Discount retailers confirmed the stock price was under pressure on Wednesday. Dollar Tree (DLTR) stock fell 5.7%, marking the sharpest decline in the S&P 500. Wells Fargo Analysts have recently significantly reduced their Dollar Tree stock price targets. Stocks of Target (TGT) and Dollar General (DG) fell 4.9% and 4.8% respectively.
Shares of alcoholic beverage maker Brown Forman (BF.B) fell 5.1%. The European Union’s decision to collect 50% tariffs on whiskey imports from the US, which will take effect on April 1, presents sales challenges in Jack Daniels’ manufacturers’ main markets.
United Airlines (UAL) stock lost 4.7% after saying it would reduce capacity in the second half of 2025 and reduce its ability to advance 21 retirements. The move comes after rival Delta Air Lines (DAL) reduced guidance and cited softness in travel demand.
