President Trump is already reversing the disastrous economic trends of the Biden-Harris Administration.
In the first full month of his Administration, core CPI dropped to the lowest level in nearly four years.https://t.co/K9jVpOMSvI
— Energy and Commerce Committee (@HouseCommerce) March 13, 2025
U.S. stock indexes rose Wednesday after encouraging inflation data, but the ongoing trade war continues to create volatility in the market. The S&P 500 gained 0.5% after fluctuating between an early gain of 1.3% and a later loss. The Dow Jones Industrial Average also saw sharp movements, rising by 287 points before dropping by 423 points.
It ended the day with a loss of 82 points, or 0.2%. The Nasdaq composite climbed 1.2%. The latest inflation report showed overall prices rose less for U.S. consumers last month than economists had anticipated.
Chris Limnios, Ph.D. of @PCEconDept discussed the Consumer Price Index and inflation rate on @WPRI12: https://t.co/FzNFVdfxkb pic.twitter.com/b8pr0rBMlp
— Providence College (@ProvidenceCol) March 15, 2025
This provided a boost to companies in the tech industry. Notable gainers included server-maker Super Micro Computer, which rose 4%, and GE Vernova, which increased by 5.1%. Despite these gains, more stocks in the S&P 500 fell than rose.
Latest inflation reports show inflation cooling to 2.8%—a good sign for the U.S. economy.
I am fighting to get our fiscal house back in order and reverse the harmful economic policies of the previous administration.https://t.co/Z36RP09UQK
— Congresswoman Laurel Lee (@RepLaurelLee) March 14, 2025
Tech stocks gain from inflation data
Among the hardest hit were businesses potentially affected by new tariffs. Brown-Forman, the company behind Jack Daniel’s whiskey, dropped 5.1%, and Harley-Davidson sank 5.7%.
U.S. bourbon and motorcycles are among the products targeted by retaliatory tariffs from trade partners. European Union President Ursula von der Leyen commented on the impact of tariffs, stating, “Tariffs are taxes. They are bad for business and worse for consumers.”
The question remains as to how much the market can endure through tariffs and other policies.
President Donald Trump has expressed a desire to bring manufacturing jobs back to the United States, reduce the government workforce, and increase deportations. However, these measures have ramped up uncertainty, causing U.S. households and businesses to reconsider spending, which could adversely affect the economy. For example, Delta Air Lines sank 3% following a 7.3% decline the previous day when the carrier reported weakening demand for close-in bookings.
On the other hand, Casey’s General Stores reported stronger-than-expected profit and revenue for the latest quarter, thanks in part to robust sales of hot snacks. In summary, while positive inflation data provided a rare up day for Wall Street, the ongoing trade war continues to cast a shadow over the market, impacting various sectors and adding to economic uncertainty.
Photo by; Alesia Kozik on Pexels
