Tariffs and Tech: A Tug of War on Wall Street

Wall Street saw positive movement on Wednesday as lower-than-anticipated inflation data alleviated a sell-off in growth stocks. However, President Trump's escalating tariff announcements restrained gains. The S&P 500 rose alongside the Nasdaq, driven largely by technology shares, but uncertainties linger with rising trade tensions and economic indicators.

Wall Street made gains on Wednesday, aided by cooling inflation figures that helped ease a sharp sell-off in growth stocks. Despite these gains, U.S. President Donald Trump's chaotic, multi-front tariff war capped progress. Tech-heavy Nasdaq and the S&P 500 showed positive trends, driven by strong performances in technology stocks, notably microchips.

The Dow Jones Industrial Average struggled to stay positive amidst mixed signals. While positive inflation data sparked hopes for interest rate cuts by the Federal Reserve, concerns persisted over the potential impact of tariffs on future inflation, according to market strategist Paul Nolte. These commercial tensions continue to overshadow investor confidence.

In response to the 25% duties imposed by Trump on steel and aluminum imports, Canada and Europe have retaliated with tariffs on U.S. exports, sparking fears of an impending recession. As investors stay wary of market volatility, Goldman Sachs has adjusted its year-end S&P 500 projections, while JPMorgan expressed concerns about the increased likelihood of a U.S. recession.

(With inputs from agencies.)