Stocks Rally as Tech Rebounds Amid Cooling Inflation and Tariff Uncertainty

The S&P 500 climbed 0.4% Wednesday, buoyed by a tech sector rebound after softer-than-expected inflation data. The Nasdaq 100 jumped 1.2%, with NVIDIA (NASDAQ:NVDA) surging 8% as investors capitalized on the recent dip. The Dow Jones Industrial Average also added 0.4%.

Cooling inflation eased stagflation concerns, with U.S. consumer prices rising 2.8% year-over-year in February, down from 3.0% in January, and monthly CPI slowing to 0.2% from 0.5%. Core CPI, excluding food and fuel, also decelerated to 3.1% annually and 0.2% monthly, both below estimates. Analysts suggest the Federal Reserve will maintain its patient stance at next week’s meeting.

Meanwhile, President Trump’s expanded steel and aluminum tariffs took effect, prompting retaliatory measures from the EU, which plans new tariffs on U.S. exports next month. Trump threatened further tariffs on EU car imports, while Canada announced 25% reciprocal tariffs on C$30 billion in U.S. goods. However, Ontario later dropped the measure, leading Trump to ease his stance.

Intel (NASDAQ:INTC) shares rose over 4% on reports that TSMC (NYSE:TSM) is exploring a joint venture with Nvidia, AMD, Broadcom, and Qualcomm to operate Intel’s struggling U.S. foundry business. The deal, which requires approval from Trump, would see TSMC take operational control but not a majority stake.

Amazon (NASDAQ:AMZN) gained over 1% after the Federal Trade Commission sought a two-month delay in its lawsuit alleging deceptive Prime sign-ups.

With tech stocks rebounding and inflation cooling, investors are closely watching the Fed's next move amid ongoing trade tensions.