The U.S. stock market in New York closed mixed on the 12th (local time). The published U.S. Consumer Price Index (CPI) for February confirmed a slowdown, alleviating concerns of stagflation, where recession and rising prices occur simultaneously, as investors bought back technology stocks that had plummeted for two consecutive days, boosting the Nasdaq.
On the same day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 41,350.93, down 82.55 points (0.20%) from the previous trading day. However, the Standard & Poor's (S&P) 500 Index rose by 7.23 points (0.49%) to finish at 5,599.30, while the tech-heavy Nasdaq index also ended up 212.35 points (1.22%) at 17,648.45.
Technology stocks declined more than 3% this week, but rebounded on this day, lifting the S&P 500. Nvidia rose by 6.4%, and AMD's stock also increased by over 4%. Meta was up 2%, while Tesla jumped more than 7%.
In particular, the U.S. Department of Labor's announcement that the Consumer Price Index (CPI) for February increased by 0.2% compared to the previous month calmed market anxieties. The CPI rose 2.8% compared to the same period last year, showing a gradual increase compared to January (3.0% increase), which eased inflation fears. The core CPI for February also rose by 0.2% compared to the previous month, slowing from January's (0.4%) growth rate. Compared to the same period last year, it increased by 3.1%, slightly down from January's (3.3%).
Dave Greegsek, managing director of investment strategy and research at Aspiriant Asset Management, noted to CNBC, "The February CPI results may have slightly mitigated stagflation concerns," adding, "Some degree of flexibility in the Federal Reserve's (Fed) policies is likely to be restored." He further analyzed, "If the February CPI had been higher, market concerns would have been much more severe," stating, "That would be a position where the economy continues to weaken but the Fed is unable to respond."