The Nasdaq Composite rose on Wednesday after a soft inflation report eased concerns about the economy and as investors snapped up beaten-up technology shares.

The tech-heavy benchmark added 1.22% and closed at 17,648.45, while the S&P 500 gained 0.49% to end at 5,599.30. The Dow Jones Industrial Average slipped 82.55 points, or 0.2%, to settle at 41,350.93.

Though the tech sector is off more than 3% week to date, the cohort bounced on Wednesday to lead the S&P 500 higher. Nvidia gained 6.4%, and AMD added more than 4%. Meta Platforms advanced 2% and Tesla jumped more than 7%.

The consumer price index, a broad measure of costs across the U.S. economy, increased 0.2% for the month, putting the annual inflation rate at 2.8%. This was lower than the respective Dow Jones estimates for 0.3% and 2.9%. Core CPI, which excludes volatile food and energy prices, rose 0.2% on the month and 3.1% for the past 12 months, both below expectations.

"This reading is going to be a little dilutive to this stagflation narrative, and it is going to restore to some extent policy flexibility from the Fed," said Dave Grecsek, managing director in investment strategy and research at Aspiriant Wealth Management. "If this inflation number was higher, you'd have some of these concerns weighing much more heavily, like the Fed would not be in a position to respond if the economy continues to weaken."

President Donald Trump's steel and aluminum tariffs took effect on Wednesday, and Canada said it will impose 25% retaliatory duties on more than $20 billion worth of U.S. goods. The European Union also responded swiftly, pledging to impose counter-tariffs on 26 billion euros, or $28.33 billion, worth of U.S. imports beginning in April.

Stocks have been under pressure as traders fear the escalating tensions could trigger a U.S. recession. Part of the reason for the recent sell-off has been concern that Trump's volatile trade policy would raise inflation and slow growth, otherwise known as stagflation.

This week alone, the Dow, S&P 500 and Nasdaq have all dropped roughly 3%. The S&P 500 briefly dipped into correction territory on Tuesday, down 10% from a record set in February. Over the past month, the S&P 500 has lost more than 7%, while the Dow and Nasdaq have shed 6.8% and 10.2%, respectively.

"We're not surprised the market's pulled down. Obviously, U.S. equity markets have been exceptionally strong over the last two years. It's right to expect a correction," Grecsek added. "But I think once we get through this — we're in the very early events of these key fiscal policy changes — there's better news to come."

Tech rally pushes Nasdaq, S&P 500 higher

A rally in tech stocks pushed the S&P 500 and Nasdaq Composite higher on Wednesday.

The broad market index added 0.49% and finished at 5,599.30. The tech-heavy Nasdaq rose 1.22%, closing at 17,648.45.

The Dow Jones Industrial Average lagged, shedding 0.20%, and ended the day at 41,350.93.

— Lisa Kailai Han

Market sell-off has been overdone, says Ned Davis Research

Investors have sent stocks lower on the back of recent tariff fears, with stocks teetering near correction territory over the past few days.

But in a Wednesday note, investment research firm Ned Davis Research said these fears may be overblown.

"The overall takeaway from the reports and composite is that the market fears are out of proportion with market performance," wrote Tim Hayes, the firm's chief global investment strategist. "If the economic and market worries are justified, much more market weakness and contraction evidence may lie ahead. But the weight of the evidence says something different."

He added: "We're more likely to see widespread recognition that the fears have not been justified, in which case equities will start recovering from the extreme pessimism."

— Lisa Kailai Han

Trump 'a long way from done' on implementing tariff policies, Wolfe Research says

President Donald Trump's haphazard tariff policies have stirred markets up in recent weeks.

But the bad news, according to Wolfe Research? There's likely to be more pain ahead when it comes to mounting trade tensions.

"How far might Trump be willing to go? We don't buy the notion that he's trying to cause a recession, but we think it's clear he's willing to tolerate significant pain. This was our argument last week when he let the MEX/CAN tariffs take effect," wrote Tobin Marcus, the firm's head of U.S. policy and politics. "We've never been believers in an easy, mechanical 'Trump put,' and at this point, we think investors should take the President at his word. He is determined to use tariffs to restructure the global economy, and we think he's a long way from done, in terms of both time and pain tolerance."

— Lisa Kailai Han

Jamie Dimon says geopolitical risk is paramount to the free world

JPMorgan CEO Jamie Dimon said it is difficult to accurately assess the current state of the U.S. economy, saying the geopolitical uncertainty is the biggest risk right now.

"I think the geopolitical stuff is paramount for the free world, far more important than what happens in the economy in the next six months or so, for the next year or so," Dimon said Wednesday at the BlackRock Retirement Summit.

The bank chief compared the economy to the weather as he believes it reacts to a host of factors.

"If you look at the economy today … consumers are still spending money. Jobs are still plentiful; wages are still going up. CPI is kind of leveled off a little bit," he said. "But you do see a weakening of sentiment … certain type of spend that people consider more discretionary. And you know what changes? That is hard to tell."

— Yun Li

Bank of America prefers midcaps over small-caps

Small-cap stocks have contracted to levels slightly below average. But despite this pullback, Bank of America is still not optimistic on the asset class' long-term prospects.

"Small caps would also be more at risk from immigration reform. And though recession is not our base case, macro uncertainty and softer-than-expected data could continue to stymie small cap's profits recovery, where 4Q guidance/commentary were weak," wrote strategist Jill Carey Hall. "Refinancing risk remains a worry if rates stay high and profits remain challenged, particularly if credit spreads continue to widen."

She added that she currently prefers midcaps over small caps.

— Lisa Kailai Han

Look for 'signal through the noise' of tariff headlines, Wells Fargo's Cronk says

Wells Fargo Investment Institute president Darrell Cronk said in a note to clients that investors should look for the "signal through the noise" of the frequently changing tariff policy coming out of the White House.

"The noisy headlines around geopolitical, trade, and fiscal policy have fueled a heightened state of uncertainty. The good news up to this point is that the actual delivery of policies has been milder than the more extreme measures proposed," the note said.

Similarly, Cronk pointed out that signs of economic weakness have not yet materialized into a full slowdown on the ground.

"We have yet to see sentiment spill materially into the 'hard' economic data, like actual consumer spending, capital expenditures, and company earnings. We will watch this trend closely," the note said.

— Jesse Pound

Stay defensive as disruptive trade policies mount, BCA Research says

The Trump Administration's disruptive trade policies could potentially induce a bear market or even recession. Against this backdrop of heightened volatility, BCA Research is suggesting investors stay defensive.

"In the near term, Treasuries will rally further as the trade war escalates and growth scares predominate," wrote Matt Gertken, the firm's chief geopolitical strategist. "For now, we will stick with our defensive trades: favoring Treasuries over high-yield corporate bonds and defensive equity sectors over cyclicals. We also recommend holding cash."

Gertken added that investing in energy stocks could also be a good idea, at least in the short term.

"To hedge against the risk of an oil shock, we recommend favoring US energy stocks over cyclicals, namely tech. The speed of the tech selloff could force us to close this trade in the near term, but we will still hedge for a surprise spike in oil prices despite the growth fears throughout the year," he wrote.

— Lisa Kailai Han

Novo Nordisk shares tumble after Zealand Pharma unveils lucrative weight loss drug deal

Roche is teaming up with Zealand Pharma to develop petrelintide, the Danish company's obesity treatment. Zealand could receive as much as $5.3 billion under the agreement, including $1.65 billion upfront. Zealand shares jumped 38% on the news, while Roche added 4%.

But the lucrative deal was a blow to rival obesity drugmaker Novo Nordisk. Its stock fell nearly 4%, while Eli Lilly's shares were flat.

BTIG analyst Julian Harrison said the deal validates petrelintide as the "best-in-class" amylin obesity treatment. Zealand has been working to enroll patients in its phase 2b clinical trial for the drug, and results could come in the first half of 2026.

The news follows disappointing study results from Novo's CagriSema, an experimental treatment that combines semaglutide, a drug that mimics GLP-1 gut hormones, with cagrilintide, an amylin analogue. Petrelintide also is based on amylin, a hormone that is secreted in the body with insulin. Drugmakers are betting that amylin will help patients lose weight, without causing as much muscle wasting as GLP-1 drugs can.

Novo Nordisk, the maker of Ozempic and Wegovy, has shed more than 12% of its value year to date, while Lilly, the maker of Mounjaro and Zepbound, has gained almost 7%. Month to date, both stocks are down at a double-digit pace.

— Christina Cheddar Berk

Who absorbs the tariff pain? Walmart's experience in China is telling

Walmart's attempt to get its suppliers in China to bear the burden of U.S. tariffs is meeting with resistance, according to a report from a state-backed media outlet. Chinese officials met with Walmart after suppliers complained about the pressure they were under to cut prices. The government warned the retailer that such actions could violate contracts and trigger legal action, the report said.

President Trump slapped an additional 10% duty on Chinese goods on March 4. That move followed a 10% tariff that began Feb. 4.

China is a key part of Walmart's supply chain and the country has become a small but growing part of Walmart's sales, according to a note from Oppenheimer's trading desk. It said the retailer rang up $5 billion in sales in the latest quarter there, up 28% from the prior year. That tally was less than 3% of the retailer's global total revenue, the note said.

After a strong run in 2024, Walmart shares have pulled back more than 3% year to date. Shares were down 2% in trading Wednesday.

— Christina Cheddar Berk

Stocks should shake off short-term market volatility to rise 18% from here

Market risks have certainly increased, but UBS still has an overall bullish view on the U.S. economy.

"Our base case remains that US economic growth can remain resilient, enabling the equity rally to resume — supported by continued heavy investment in AI and progress toward monetization," the firm wrote in a Tuesday note. "We see further upside for U.S. equities and expect the S&P 500 to reach 6,600 by the end of 2025, around 18% higher than current levels. U.S. policy uncertainty could lead to short-term volatility, but we believe that robust U.S. economic growth and continued structural AI tailwinds should be supportive overall."

The firm recommended investors consider incorporating high-quality fixed-income assets to hedge against tariff risks.

— Lisa Kailai Han

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading:

• Nvidia — Stock in the chipmaker surged more than 6%, reversing course after several weak sessions. Shares slumped roughly 8% in March and are down 14% in 2025.
• Target — Stock in the retailer slipped about 3% as the broader field of consumer defensive stocks took a leg lower on Wednesday. Peer retailer Walmart declined almost 2%.
• Crocs — The shoemaker advanced 3% on the back of Loop Capital's upgrade to buy from hold. Loop said the stock has an attractive valuation, which provides an entry point for investors, amid recent market volatility that has been tied to tariff uncertainty.

Read the full list here.

— Brian Evans

Consumer staples fall as defensive stock trade reverses

Consumer staples stocks were underperforming on Wednesday as investors dumped some defensive names that have outperformed in recent weeks.

The sector was down 1.7% in midday trading, according to FactSet, making it the worst performing of the 11 major groups.

Some of the worst performers in the group were Hershey, down 4%, and Mondelez and Campbell's, each falling more than 3%.

Whiskey maker Brown-Forman, which could see a hit from the trade war, fell 7%.

Utilities, health care and real estate were other defensive sectors in the red.

— Jesse Pound

Tech leads market higher for the week

Information technology is up 1.4% Wednesday, making it the best-performing sector in the S&P 500 for the day.

Chipmakers powered the tech group higher. Micron Technology jumped 7%, followed by Nvidia up 5.9%.

Communication services also outperformed the broader market Wednesday, rising 0.9%. Netflix and Meta Platforms advanced 2% each.

Week to date, however, both technology and communication services are down more than 3%. The only sector in the green for the period is energy, which is up 0.6%.

— Hakyung Kim

Tesla leads market higher

Tesla led the market higher on Wednesday, marking a reprieve after a rough patch for the closely watched stock.

Shares jumped more than 5% in the session, making it one of the best-performing members of the S&P 500. By comparison, the broad index ticked higher by 0.3% shortly before 11:45 a.m. ET.

Tesla has jumped over the last two sessions after President Trump signaled his intent to buy one of the company's electric vehicles as a sign of support for CEO Elon Musk, who is leading the president's controversial government efficiency initiative. A Morgan Stanley survey found 85% of investors see Musk's political involvement to be "negative" or "extremely negative" for the company.

That is a turn for the struggling stock, which has still plunged more than 38% in 2025. The stock on Monday alone tumbled more than 15%, notching its biggest one-day loss since 2020.

— Alex Harring

17 S&P 500 stocks trade at new 52-week lows on Wednesday

Seventeen stocks in the S&P 500 were trading at new 52-week lows during Wednesday's session.

Tickers that hit this milestone included:

• Omnicom Group trading at lows not seen since November 2023
• Ross Stores trading at lows not seen since November 2023
• Global Payments trading at lows not seen since July 2017
• CSX trading at lows not seen since October 2023
• FedEx trading at lows not seen since February 2024
• J.B. Hunt trading at lows not seen since March 2021
• Old Dominion Freight Line trading at lows not seen since June 2023
• Host Hotels trading at lows not seen since October 2023
• Target trading at lows not seen since November 2023
• Fidelity National Information Services trading at lows not seen since February 2024

— Lisa Kailai Han

Airline stocks continue their spiral lower

Airline stocks continued to freefall on Wednesday, a day after Delta Air Lines, American Airlines and Southwest Airlines warned that a weaker economic backdrop could slow domestic travel demand.

Here's how some major airline stocks were faring on Wednesday:

• Delta Air Lines: down 5.2% on the day and 17% on the week. Pacing for worst week since March 2022.
• United Airlines: down 6.3% on the day and 14% on the week. Pacing for worst week since August 2024.
• American Airlines: down 4.6% on the day and 16% on the week. Pacing for worst week since May 2024.

— Adrian van Hauwermeiren, Lisa Kailai Han

Buy the dip in Robinhood, says Deutsche Bank

The recent sell-off in Robinhood has presented a good buying opportunity, Deutsche Bank said in a note Tuesday.

The firm reiterated its buy rating but lowered its price target to $61 from $75, which suggests 68% upside from Tuesday's close.

"We view HOOD's February metrics as being reasonably good overall, with continued strong momentum in trading volumes across equities and options, robust traction on new products particularly on index options with record activity in February, and a faster revenue ramp in futures), as well as robust net deposits and strong growth in margin balances," analyst Brian Bedell wrote.

Shares are down more than 40% since its most recent high on Feb. 14. They are up nearly 8% in premarket trading.

— Michelle Fox

Altimeter's Gerstner says he's on the sidelines to wait out the uncertainty

Brad Gerstner, Altimeter Capital founder and CEO, said he is waiting out this current uncertain macroeconomic backdrop.

"We have high economic uncertainty, high political uncertainty and high technological uncertainty," Gerstner said on CNBC's "Squawk Box." Discount rates have to go up. Risk premiums have to go up … so for us, that was just a period to say OK, we'll go to the sidelines to wait this out."

The hedge fund manager said he has taken down the net and gross exposure to the bottom decile of exposure that Altimeter would normally have. That being said, Gerstner revealed he picked up some beaten-down stocks Tuesday.

— Yun Li

Semiconductor ETF on pace for best day since September

The VanEck Semiconductor ETF (SMH) was last trading 3.6% higher on Wednesday, pacing for its first gain in three sessions.

This would mark the exchange-traded fund's best day since Sept. 19, 2024, when it rose 4.3%.

However, the fund is still on track to close the week with a 1.5% loss. This would be its fourth straight week of declines in a row.

— Nick Wells, Lisa Kailai Han

Softer inflation data boosts stocks on Wednesday

Stocks rose on Wednesday, boosted by a softer-than-expected February consumer price index reading.

The Dow Jones Industrial Average added 200 points, or 0.5%. The S&P 500 rose 1% and the Nasdaq Composite gained 1.8%.

— Lisa Kailai Han

Loop Capital upgrades shares of Crocs, says volatility around tariffs has created buying opportunity

Crocs' recent pullback in shares has created an enticing entry point for investors, according to Loop Capital.

Shares rose around 4% in the premarket after the firm upgraded the stock to buy from hold, pointing to gains ahead for its Hey Dude brand. Its current price target implies nearly 12% upside potential.

"We think valuation is attractive, and the company sounded on plan at our conference this week," analyst Laura Champine wrote Wednesday. "Management expects DTC to grow this year at Hey Dude, and we think our expectation for 1% growth in the channel may prove conservative. Hey Dude laps easy comparisons, and DTC may show upside growth in Q1 as the brand laps -11% YoY."

The stock has also moved more than 5% over the past week on the heels of President Donald Trump imposing an additional 10% tariff on Chinese goods early last week.

"The additional 10% tariff that has been announced recently on Chinese-made goods is not in CROX's previous outlook," Champine wrote. "That said, Hey Dude is pulling back production in China to 27% of the total, which is a massive shift as it adjusts to the volatile tariff environment."

"We think volatility around tariffs has created a buying opportunity," the analyst added.

— Sean Conlon

Consumer prices rise less than expected in February

The consumer price index rose slightly less than expected in February, a welcome sign for investors as worries over inflation persist.

CPI increased 0.2% month over month and 2.8% from the year-earlier period. Economists polled by Dow Jones expected CPI to have risen 0.3% month over month and 2.9% from the year-earlier period.

— Fred Imbert

See the stocks moving before the bell

These are some of the stocks making notable premarket moves:

• Groupon — Shares of the digital marketplace surged around 21% after the company's full-year revenue guidance surpassed Wall Street's expectations. Groupon issued a range of $493 million to $500 million, exceeding the consensus forecast of $491.5 from analysts polled by FactSet.
• Intel — Shares jumped 8% after Reuters reported that TSMC has raised a joint venture proposal to U.S. chipmakers Nvidia, Advanced Micro Devices and Broadcom to operate Intel's foundry division.
• Crocs — The shoe stock popped 4.2% on the back of Loop Capital's upgrade to buy from hold.

See the full list here.

— Alex Harring

Deutsche Bank shares four forces that could shape new world trade order

With heightened uncertainty around a looming trade war coming in the form of tit-for-tat retaliation, Deutsche Bank believes the current global trade order as we know it could be reshaped in very dramatic ways.

"The outstanding question is whether trade will now enter an outright decline, or evolve anew with reduced US leadership and involvement," wrote strategist Mallika Sachdeva in a recent note. "Taking a step back from the ongoing news flow, we look at the longer-term forces that are likely to shape global trade going forward, focusing on the four key economic blocs."

These forces include:

1. "U.S. energy independence is enabling a return to more protectionist roots."
2. "China will likely remain trade-focused to secure resources, export markets, and influence."
3. "Trade lies at the heart of the European project and this is not likely to change."
4. "Many countries in the Global South will likely continue to look to trade for development even as it gets more challenging."

— Lisa Kailai Han

Asia-Pacific markets trade mixed despite tariff uncertainty and recession fears in the U.S.

Asia-Pacific markets were mixed on Wednesday, after all three benchmarks on Wall Street whipsawed on uncertainty over U.S. President Donald Trump's tariff plans and fears of a recession in the world's largest economy.

Japan's benchmark Nikkei 225 index ended the day flat at 36,819.09, while the broader Topix index gained 0.91% to close at 2,694.91.

Shares in automaker Nissan increased 0.61% in choppy trade, following an announcement that CEO Makoto Uchida will step down from his position April 1. He will be replaced by Ivan Espinosa, the company's current chief planning officer.

The company had been in talks with Honda Motor to merge and create what would have been the world's third-largest automaker by sales. Discussions on this were terminated, but Honda had reportedly said it was open to resuming merger talks after Uchida steps down.

Shares in Honda, meanwhile, fell 0.14%.

Japan's annual wholesale inflation hit 4% in February, slowing from the seven-month high of 4.2% the month before.

The latest reading is still well above the country's 2% inflation target and raises bets that the Bank of Japan will hike interest rates.

South Korea's Kospi index closed 1.47% higher at 2,574.82, while the small-cap Kosdaq advanced 1.11% to end at 729.49.

Hong Kong's Hang Seng Index fell 1.36% in its last hour, while mainland China's CSI 300 lost 0.36% to close at 3,927.23.

China's 10-year government bond yield is now hovering at 1.918% and is edging up to the 2% key psychological level. Meanwhile, the 30-year yield was at 2.015%, after it rose above the 2% level on Monday.

Meanwhile, losses in Australia's S&P/ASX 200 widened to 1.32% to end the day at 7,786.20.

Elsewhere, India's benchmark Nifty 50 fell 0.55%, while BSE Sensex was down 0.34% as of 1:15 p.m. local time.

— Amala Balakrishner

Stocks making the biggest moves after hours

Check out some of the stocks making headlines in extended trading:

• Groupon — Shares gained nearly 7% after the e-commerce marketplace issued better-than-expected full-year revenue guidance. Groupon forecasts full-year revenue in the range of $493 million to $500 million, while analysts polled by FactSet were looking for $491.5 million.
• Heritage Insurance Holdings — Shares of the property and casualty insurance company slipped 4%. Net income came in at 66 cents per diluted share in the fourth quarter, down from $1.15 per share in the year-ago quarter.
• Casey's General Stores — Stock in the convenience store operator advanced 3% after fiscal third-quarter results surpassed analysts' estimates on the top and bottom lines. The firm reported earnings of $2.33 per share on revenue of $3.90 billion. Analysts polled by LSEG anticipated earnings of $1.96 per share and revenue of $3.73 billion.

— Brian Evans

Stock futures open little changed

Stock futures were little changed on Tuesday as investors looked toward the February consumer price index report.

Futures tied to the S&P 500 gained 0.13%, while Nasdaq 100 futures advanced 0.17%. Futures tied to the Dow Jones Industrial Average gained 37 points, or 0.09%.

— Brian Evans