Wall Street Rally Fuels Global Tech Stock Surge
Wall Street surged midweek as weaker inflation data helped ease investor fears. The S&P 500 gained 0.5% and the Nasdaq soared 1.2%. The rebound was led by megacap tech stocks, lifting sentiment in global markets. Futures pointed to further gains Thursday.
Asian markets mirrored Wall Street’s optimism. Japan’s Nikkei rose 0.9%, helped by chipmakers. Taiwan’s tech index climbed 0.6%, and South Korea’s KOSPI added 0.7%. Mainland China saw modest gains, while Hong Kong’s Hang Seng slipped 0.3%.
Wall Street Reacts to Softer U.S. Inflation Data
U.S. consumer prices rose just 0.2% in February, down from January’s 0.5% increase. The data offered relief for investors fearing aggressive Fed action. Excluding food and energy, core CPI also rose 0.2%, suggesting cooling inflation.
Wall Street welcomed the report, but analysts warned the data may not influence the Fed’s preferred PCE index. Producer prices, due later Thursday, will offer further insight.
Tariffs Cast a Shadow Over Wall Street Optimism
Despite the gains, Wall Street remains cautious as President Donald Trump’s tariff campaign intensifies. On Wednesday, tariffs on steel and aluminum imports took effect, triggering swift retaliation from trading partners.
TD Securities analysts warned that trade policy uncertainty could worsen inflation and delay rate cuts. “The worst is yet to come,” they said in a client note, highlighting the risk of recession due to global trade tensions.
Wall Street Monitors Treasury Yields and Dollar Moves
U.S. Treasury yields rose further from Tuesday’s five-month low. The two-year note climbed to 4.005% before settling at 3.924%. Rising yields lifted the dollar, which held at $1.0895 per euro on Thursday.
Wall Street closely watches bond markets for recession signals. Higher yields often indicate tightening financial conditions, especially amid unpredictable White House trade policies.
Wall Street and Global Assets: Gold, Oil, and Bitcoin
Gold climbed 0.3% to $2,943.49, nearing its all-time high. Investors turned to the precious metal amid trade volatility and inflation concerns. Crude oil steadied after a 2% rally, with Brent futures at $70.88 and WTI at $67.57 per barrel.
Bitcoin rose 1% to $84,000, rebounding from Tuesday’s dip to $76,666. Analysts attributed the bounce to easing inflation and optimism around Wall Street’s performance.
Euro and Yen Move on Wall Street and Geopolitical Cues
The euro steadied after touching a five-month high. Gains came from hopes of peace between Russia and Ukraine, and Germany’s increased defense spending.
The Japanese yen pulled back to 146.205 per dollar after recent strength. A climb in long-term bond yields faded, with Bank of Japan Governor Ueda signaling continued monetary tightening.
Wall Street Outlook Hinges on Trade and Fed Decisions
Wall Street’s near-term path depends on clarity around tariffs and Fed rate policy. While inflation looks to be cooling, trade frictions remain a major wildcard.
Investors are bracing for more volatility, particularly if tariffs expand or retaliatory measures increase. Meanwhile, Fed officials will weigh inflation and economic data in shaping their next moves.