Wall Street Stays Cautious as Inflation Cools, Rate Cut Bets Fade
U.S. equity markets were mixed on Wednesday, with investors reacting to softer inflation numbers but pushing back expectations for near-term Fed rate cuts. Strong retail sales data hinted at underlying economic resilience, adding to the tug-of-war in investor sentiment.
- Dow Jones Industrial Average: -0.40%
- Nasdaq Composite: -0.49%
- S&P 500: -0.33%
Asian Markets React to U.S.-China Tariff Relief
Asian equities saw broad gains following news of a 90-day U.S.-China tariff rollback agreement. Hong Kong’s Hang Seng surged as tech shares rebounded, while Japan’s Nikkei fell on profit-taking after recent highs.
- Hang Seng Index: +2.30%
- Nikkei 225: -0.98%
- Shanghai Composite: +0.65%
European Stocks Struggle to Find Direction
Markets across Europe traded sideways as investors weighed ECB commentary against falling energy prices and a dip in eurozone inflation. Financial and energy sectors showed mild weakness.
- DAX (Germany): +0.03%
- CAC 40 (France): -0.24%
- FTSE 100 (UK): +0.18%
Key Stock Movements (U.S. Market)
- Apple (AAPL): -0.9% after supply chain concerns resurfaced amid tariff news.
- Nvidia (NVDA): +2.8% on bullish AI chip demand outlook.
- ExxonMobil (XOM): -1.2% as crude oil declined sharply.
- Tesla (TSLA): +1.4% ahead of EV production update next week.
Global Economic Headlines
Oil Drops Over 3% on Iran Nuclear Deal Hopes
Crude prices slid as negotiations between the U.S. and Iran showed progress, raising expectations of increased oil supply.
- WTI Crude: -3.2%
- Brent Crude: -3.0%
Gold Declines as Risk Appetite Grows
Gold prices retreated 3.5%, reflecting reduced geopolitical tensions and improving risk sentiment in equities.
- Gold (XAU/USD): -3.5%
U.S. Inflation Cools to 2.3%
The CPI print showed inflation easing to a four-year low, yet strong consumer demand is tempering expectations for aggressive Fed easing this summer.
RBI Maintains Neutral Tone
India’s central bank held steady, signaling a neutral monetary stance as inflation remains under control. Indian equities responded positively.
- iShares MSCI India ETF (INDA): +1.19%
Conclusion
Markets are digesting a complex set of signals — cooling inflation, strong demand, and international trade developments — all pointing to a cautiously optimistic Q2. As global central banks hold their ground and volatility remains elevated, traders are advised to stay nimble and data-driven.
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