Stock Market Today: Stocks leap on CPI inflation relief

U.S. equity futures moved higher in early Wednesday trading, while Treasury yields and the dollar held steady, as investors picked through a key inflation reading that could provide an early indication of the impact of President Donald Trump's trade and tariff policies. 

Updated at 8:40 AM EST

Inflation relief

U.S. consumer inflation eased modestly last month, suggesting little early impact on prices from President Trump's tariff threats, which won't be worked into the economy until later this spring.

The Commerce Department said its headline consumer price Index for the month of February was pegged at an annual rate of 2.8%, down from the 3% pace recorded in January and just inside Wall Street's 2.9% forecast.

So-called core inflation, which strips out volatile components like food and energy, slowed to an annual rate of 3.1%, besting Wall Street's 3.2% forecast and January's 3.3% pace.

U.S. stocks extended gains following the data release, with futures tied to the S&P 500 suggesting an opening bell gain of 65 points and the Nasdaq called 302 points higher. The Dow is pegged for a 330 point advance

Benchmark 10-year Treasury note yields slipped 4 basis points to 4.275% following the data release while 2-year notes were pegged at 3.935%.

The Fed's CPI Nowcast projected 0.23% MoM CPI for February and we just came in at 0.2%.

If you liked February's number, you should love March, which is projected at 0.01% right now. pic.twitter.com/rVMIu8x19d— Bespoke (@bespokeinvest) March 12, 2025

Stock Market Today

Stocks ended firmly lower on Tuesday following a whipsaw session that saw the S&P 500 slip briefly into correction territory, defined as a 10% slump from a recent peak. The market move came amid a fresh round of tariff confusion from the White House.

Trump unveiled new levies on steel and aluminum imports, and threatened a larger duty on those products coming from Canada, only to back off later in the day following a phone call between Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford. 

Tariffs on the metals will remain in place, however, and with so-called reciprocal levies set for next month on dozens of U.S trading partners, the European Union responded Wednesday with $28 billion in targeted tariffs on U.S. goods.

Trump himself warned that levies could be increased over the coming months, telling a Business Roundtable event late Tuesday that they're "throwing off a lot of money for this country."

The Business Roundtable itself issued a statement last week warning that prolonged tariffs would "run the risk of creating serious economic impact."

The first indication of that impact could come today, in fact, through the Commerce Department's February inflation report at 8:30 a.m. Eastern Time. The report is expected to show a modest easing in both headline and core price pressures.

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"Concerns persist over the inflationary impact of President Trump’s tariff policies, which could contribute to price pressures and slow economic growth," said Judith Raneri, vice president and senior portfolio manager at Gabelli U.S. Treasury Money Market Fund. 

"However, the Fed views tariffs as temporary price shocks rather than sustained inflationary drivers," she added. "If this perspective holds, the central bank may look past short-term tariff-related price increases and remain positioned to cut rates later this year."

Benchmark 10-year Treasury note yields were steady heading into the CPI inflation reading, as well as a $39 billion auction in new notes later in the session. They were last marked at 4.271%.

The U.S. dollar index, meanwhile, was last seen 0.18% higher against a basket of its global peers and trading at 103.481.

On Wall Street, futures contracts tied to the S&P 500, which has fallen 3.4% over the past two days for its worst performance since August, suggest an opening-bell gain of around 39 points.

The Dow Jones Industrial Average, meanwhile, is called 200 points higher while the tech-focused Nasdaq, which remains mired in correction territory from its December peak, is priced for a gain of around 165 points.

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In overseas markets, Europe's Stoxx 600 gained 0.93% in midday Frankfurt trading, while Britain's FTSE 100 was marked 0.54% higher in London.

Overnight in Asia, Japan's Nikkei 225 edged 0.07% higher on the session while the MSCI ex-Japan benchmark slipped 0.07% into the close of trading. 

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