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US stock futures jumped higher on Wednesday as investors digested a better-than-expected inflation reading and braced for the next move in President Donald Trump’s escalating trade war.
S&P 500 futures (ES=F) rose roughly 1.2%, after the benchmark closed not far off correction territory on Tuesday. Dow Jones Industrial Average futures (YM=F) moved up 09%, or about 350 points, while those on the tech-heavy Nasdaq 100 (NQ=F) paced the gains, up more than 1.6%.
On Wednesday, the latest data from the Bureau of Labor Statistics showed that the “core” Consumer Price Index (CPI) — which strips out the more volatile costs of food and gas — rose 3.1% in February, down from 3.3% seen the month prior. This marked the lowest yearly increase in core CPI since April 2021.
CBOT – Delayed Quote USD
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But Trump’s fast-moving tariff policy is also front of mind after uncertainty fueled another volatile session ending in losses on Tuesday. The latest wave of US tariffs went into effect as scheduled on Wednesday, putting 25% tariffs on steel and aluminum imports from all countries. The EU responded with counter-tariffs on $28 billion in US goods from April.
Read more: The latest on Trump’s tariff plans
Even as economic forecasts grow grim, Trump is forging ahead with his plans to impose broad tariffs, saying on Tuesday he doesn’t foresee the US going into a recession.
LIVE 10 updates
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Gasoline prices decrease, helping lead inflation cooldown in February
Falling gasoline prices contributed to cooler-than-expected inflation in February.
The gasoline index declined 1% last month, compared to a rise of 1.8% in the prior month, according to data from the Bureau of Labor Statistics released on Wednesday.
On an annualized basis gasoline prices decreased 3.1%.
On Wednesday, the national price of gasoline hovered at $3.08 per gallon, about $0.07 lower than a month ago, according to AAA data.
Despite the decrease in gas prices, the energy index rose 0.2% over the month as electricity and natural gas prices rose.
While oil prices have declined year to date, natural gas has soared amid a colder-than-expected winter and increasing exports.
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Key inflation measure hits lowest level in nearly four years
Stock futures are ripping higher on Wednesday morning after the release of a better-than-expected inflation reading.
On Wednesday, the latest data from the Bureau of Labor Statistics showed that the “core” Consumer Price Index (CPI) — which strips out the more volatile costs of food and gas — rose 3.1% in February, down from 3.3% seen the month prior. This marked the lowest yearly increase in core CPI since April 2021.
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Inflation increases less than expected in February
New data from the Bureau of Labor Statistics out Wednesday showed that a key inflation metric rose by less than anticipated in February.
On a “core” basis, which strips out the more volatile costs of food and gas, the February Consumer Price Index (CPI) climbed 0.2% from January’s 0.4% monthly gain and below the 0.3% economists had expected. On an annual basis, prices rose 3.1%, below economists’ expectations of 3.2% and lower than the 3.3% increase last month.
Headline consumer prices also rose less than expected. The CPI increased 2.8% over the prior year in February, a decrease from January’s 3% annual gain in prices. The yearly increase was below the 2.9% economists had expected.
The index rose 0.2% over the previous month, well below the 0.5% surge seen in January.
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Europe stocks rebound strongly after EU reveals its counter-tariffs
European stocks were staging a comeback on Wednesday from four days of losses after the EU retaliated against US tariffs on steel.
Meanwhile, optimism rose that a US-Ukraine ceasefire plan could pause the war with Russia, as the US resumes military aid.
The pan-regional benchmark Stoxx 600 (^STOXX) index was roughly 1.2% higher at lunchtime local time.
Meanwhile, Germany’s DAX (^GDAXI) surged 1.9%, while the CAC (^FCHI) in Paris jumped 1.5%. In London, the benchmark (^FTSE) index put on 0.6% after the UK said it won’t respond to the US metals tariffs implemented on Wednesday.
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Wall Street’s hopes for a 2025 IPO bonanza are being put to the test
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February CPI report expected to show inflation moderated as ‘stagflation’ fears rise
Stock futures gained as investors awaited the first CPI inflation report under the Trump administration.
Futures on the S&P 500 (ES=F) climbed 0.8%, while Dow Jones Industrial Average futures (YM=F) rose 248 points, or 0.6%. Those on the tech-heavy Nasdaq 100 (NQ=F) led, advancing 1% higher, after a jittery session Tuesday.
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The Consumer Price Index, set for release at 8:30 a.m. ET, may be the latest event to put pressure on stocks as investors mount concerns of a US economic downturn. The report is expected to show price increases moderated in February.
Yahoo Finance’s Allie Canal writes:
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The stock market’s sharp drop might have already priced in a ‘shallow’ recession
A run of disappointing US economic data to start 2025 has prompted downgrades to forecasts for GDP growth — with Trump’s policy agenda seen as a key drag.
The S&P 500 (^GSPC) is on the verge of correction territory — 10% off its most recent record high — as those fears of an economic slowdown sparked a sell-off.
Yahoo Finance’s Josh Schafer reports:
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Intel stock jumps after report TSMC is pursuing a foundry JV with other chip leaders
Intel (INTC) shares jumped almost 8% in premarket after a Reuters report said TSMC has approached Nvidia (NVDA), Broadcom (AVGO), and AMD (AMD) about a joint venture for its chipmaking plants.
The stock has been on a ride recently as Wall Street wavered over the chances of potential deals with rivals that would break up Intel. Its shares have lost over half their value this year, which has seen the struggling US chipmaker searching for a new CEO.
But analysts have noted that a TSMC-Intel deal is likely to face scrutiny from regulators at home and abroad, and argue that a foundry move wouldn’t make sense given a difference in manufacturing processes.
Reuters reports, citing sources familiar with the matter:
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Good morning. Here’s what’s happening today.
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Trending tickers after-hours Tuesday
Groupon (GRPN)
Groupon shares rocketed up 23% after the e-commerce marketplace issued better-than-expected full-year revenue guidance. Groupon forecasts full-year revenue from $493 million to $500 million.
Finance of America Inc (FOA)
Retirement loans company Finance of America stock tanked 17% in after-hours trade.
Stitch Fix, Inc (SFIX)
Stock in online personal styling and e-commerce apparel retailer Stitch Fix jumped 19% in after-hours trade. After announcing earnings, Stitch Fix projects total fiscal-year sales between $1.225 billion and $1.240 billion as the company pivots to AI algorithm usage in its styling service.
