[New York Stock Market Close] Mixed Close Amid Easing Inflation and Tariff Uncertainty... Nasdaq Up 1.22%

# Wall Street Mixed as Inflation Softens; Tech Sectors Rebound New York – October 12 (NISP Kim Min-jung Correspondent) – Major indices on the New York Stock Exchange ended mixed on the 12th, as U.S. inflation softened more than expected last month. Investors, particularly those eyeing undervalued technology stocks, took the opportunity to buy on the dip despite ongoing concerns regarding President Donald Trump's ongoing trade wars. The Dow Jones Industrial Average closed down 82.55 points, or 0.20%, to 41,350.93. Meanwhile, the S&P 500, driven by large-cap stocks, rose 27.23 points, or 0.49%, to 5,599.30. The tech-heavy Nasdaq Composite surged 212.35 points, or 1.22%, to 17,648.45. Last month, U.S. inflation rose less than anticipated. According to the Department of Labor, February's Consumer Price Index (CPI) increased 0.2% month-over-month and 2.8% year-over-year. This marks a deceleration from December's 0.5% and 3.0% respective rises. Economists surveyed by Reuters had predicted a 0.3% month-over-month increase and a 2.9% year-over-year rise. Excluding volatile food and energy prices, core CPI rose 0.2% month-over-month and increased at an annual rate of 3.1%, the slowest since April 2021. Investors speculate that despite the inflation slowdown, the Federal Reserve is unlikely to alter its monetary policy stance. The impact of tariffs, which have yet to manifest significantly in inflation data, remains uncertain. Market participants expect that the Federal Open Market Committee (FOMC) will maintain the federal funds rate at 4.25%-4.50% at its regular meeting on March 18-19. Peter Cardillo, Chief Market Economist at Spartan Capital Securities, remarked, “Will this significantly impact the Fed? I don't think so. This issue is likely to be discussed at next week's FOMC meeting. They will probably indicate that inflation is moving in the right direction, but also highlight the uncertainty regarding the impact of tariffs.” Breese Khurana, Bond Portfolio Manager at Wellington Management, noted, “Interest rates could remain unchanged for an extended period until the Fed is fully confident that government policy won't spark additional inflation.” A pedestrian is seen walking past the New York Stock Exchange (NYSE) in New York City. [Photo: Reuters Newsis] 2025.03.13 mj72284@newspim.com Despite a moment of calm in the stock market, Wall Street remains cautious. Canada’s Ministry of Finance announced that it would impose retaliatory tariffs on $21 billion worth of U.S. goods starting March 13. This move comes in response to U.S. tariffs of 25% on steel and aluminum imports, which took effect today, impacting Canada significantly as a major exporter of these commodities. Experts warn that while President Trump may be using tariffs as a negotiation tool, prolonged trade conflicts could eventually influence economic decisions and potentially lead to a downturn. Skylar Winand, Chief Investment Officer at Regan Capital, suggested, “If these issues persist for several months, we may see consumers and businesses reducing spending, leading to slower growth rates.” Nvidia, a leading name in artificial intelligence, saw its stock rise 6.43%, driven by the influx of buying activity in the tech sector. Tesla, which experienced its worst day since 2020 on the 10th, continued its rally for a second day, climbing 7.59%. Shares of footwear manufacturer Crocs rose 3.62% following an upgrade in investment rating by Loop Capital. Looking ahead, the Producer Price Index (PPI) for February and weekly jobless claims are set to be released tomorrow (March 13). Additionally, U.S. Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford are scheduled to meet. The CBOE Volatility Index (VIX), often dubbed the "fear gauge" of Wall Street, dropped 10.85% to 24.00. mj72284@newspim.com