Wall Street experienced some relief after an encouraging report revealed that inflation eased more than anticipated last month, allowing stocks to recover a portion of their steep losses from recent weeks.
The S&P 500 climbed 1% in early trading Wednesday, following a brief dip a day earlier of more than 10% below its record high set last month.
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The Dow Jones Industrial Average gained 251 points, while the Nasdaq composite rose by 1.8%. Leading the gains were Big Tech stocks, which had previously suffered due to concerns that their valuations had become excessively high in recent years.
Tesla, whose stock price had fallen by more than half since mid-December, rebounded with a 7% increase.
U.S. futures and oil prices showed an upward trend.
France's CAC 40 edged up 0.9% in early trading to 8,014.58, while Germany's DAX jumped 1.5% to 22,644.81, and Britain's FTSE 100 rose 0.5% to 8,542.24. U.S. shares appeared poised to move higher, with Dow futures gaining nearly 0.1% to 41,510.00 and S&P 500 futures climbing 0.6% to 5,610.00.
The escalation of Trump's trade war has unsettled global markets. He increased tariffs on Canadian steel and aluminium, leading Ontario to remove a surcharge that had sparked his ire.
Japan's benchmark Nikkei 225 remained mostly unchanged, rising by less than 0.1% to 36,819.09.
Meanwhile, Hong Kong’s Hang Seng fell 0.9% to 23,566.42, while the Shanghai Composite slipped 0.2% to 3,371.92.
Australia's S&P/ASX 200 dropped 1.3% to 7,786.20, whereas South Korea's Kospi advanced 1.5% to 2,574.82.
Market sentiment remained subdued due to uncertainty over how much economic strain Trump is willing to endure to achieve his objectives.
“Trump’s tariff policies continue to create instability in markets, leaving investors uncertain about which measures will be introduced or revoked next,” said Tim Waterer, chief market analyst at KCM Trade.
Actions taken by Trump and remarks from the White House on Tuesday provided little clarity. White House press secretary Karoline Leavitt stated, “The president will look out for Wall Street and for Main Street.”
Recent market fluctuations have been accompanied by further warning signs regarding the economy, as Trump’s inconsistent tariff implementation generates confusion and pessimism among U.S. households and businesses.
These tariffs have the potential to directly harm the economy by driving up costs for American consumers and disrupting global trade. Even if their impact is less severe than feared, the constant uncertainty may deter U.S. businesses and consumers from investing or spending.
In energy markets, benchmark U.S. crude rose by 34 cents to $66.59 per barrel, while Brent crude, the global standard, increased by 31 cents to $69.87 per barrel.
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In currency trading, the U.S. dollar strengthened to 148.50 Japanese yen from 147.78 yen, while the euro inched up to $1.0921 from $1.0919.