U.S. Stocks Close Mixed Amid Trade Policy Shifts and Inflation Data

U.S. stocks exhibited mixed performance on Tuesday as investors digested the latest tariff announcements from President Donald Trump and anticipated the release of key inflation data.

Market Movement

* The Dow Jones Industrial Average rose marginally by around 0.3%.
* The benchmark S&P 500 closed nearly flat, edging slightly above the breakeven mark.
* The tech-heavy Nasdaq Composite pulled back by approximately 0.4%.

Tariff Policy Impact

The market's cautious sentiment stemmed from uncertainty surrounding President Trump's plans to impose universal like-for-like tariffs. Traded commodities, particularly steel and aluminum, were expected to face increased tariffs effective March 12. This policy shift raised concerns about their impact on global trade flows and economic growth.

Inflation Data Preview

Investors eagerly awaited the release of inflation data on Wednesday. The Consumer Price Index (CPI) and its core component, which excludes volatile food and energy prices, were estimated to show moderate levels of inflation. However, the persistence of inflationary pressures remained a key concern for the Federal Reserve as it considers future interest rate decisions.

Powell's Testimony

Federal Reserve Chair Jerome Powell started his two-day testimony before Congress, reiterating the central bank's stance of not rushing to adjust interest rates and its unwillingness to comment on trade policy. Powell emphasized the importance of the Fed's independence in making economic decisions.

Other Notable Developments

* Super Micro Computer's stock plummeted after it missed Wall Street's revenue projections.
* Intel's shares jumped on news that it would receive support from the Trump administration to produce AI chips domestically.
* Gold prices reached record highs in response to the tariff announcements, as investors sought safe-haven assets.
* Coca-Cola discussed the potential impact of the tariffs on its operations, particularly in the U.S. market.

Conclusion

U.S. stock markets navigated a mixed trading session on Tuesday, influenced by the ongoing tariff debate and anticipation of inflation data. Investors remained uncertain about the economic consequences of Trump's trade policies and closely monitored the developments in the evolving situation.