Nasdaq Jumps 1.7%, S&P 500 Rises 0.9% After Soft Inflation Report

U.S. stock markets rallied on Wednesday, led by a 1.22% increase in the Nasdaq Composite, following a softer-than-expected Consumer Price Index (CPI) report that eased inflation concerns. The CPI rose 0.2% for the month, bringing the annual inflation rate to 2.8%, both figures below analysts' expectations. Tech stocks rebounded significantly, with Nvidia up 6.4% and Tesla gaining over 7%, as lower inflation bodes well for reduced borrowing costs and supports growth potential. However, the Dow Jones Industrial Average fell slightly by 0.2%, reflecting mixed market sentiment amid ongoing trade tensions resulting from President Trump's steel and aluminum tariffs. Analysts suggest that the inflation data could provide the Federal Reserve with more flexibility in monetary policy, alleviating fears of stagflation. Despite the positive market response, caution remains due to potential economic impacts from escalating trade conflicts.