Stock market today: Stock rebound loses steam as Dow sinks, S&P 500 moves closer to correction
Published On Mar 12, 2025, 11:07 AM
US stocks struggled to maintain gains as a trade conflict between the US and Canada escalated with Canada imposing tariffs on $21 billion of US goods in response to US steel and aluminum tariffs. Despite this, the tech sector saw some gains, especially Nvidia and Tesla, both up more than 4%. Recent data from the Bureau of Labor Statistics showed a decline in inflation rates, with the core CPI rising 3.1% in February, the lowest increment since April 2021. While the market experienced volatility, analysts suggest that the recent downturn may have already priced in a shallow recession scenario.
Stock Forecasts
NVDA
Positive
The impact of tariffs and trade tensions might create further uncertainty in the market, contributing to a cautious investment climate. However, given the positive movement in the technology sector, investors might consider tech stocks for potential growth despite broader market challenges.
SPY
Negative
The volatility due to trade wars is likely to create headwinds for overall market performance, particularly for companies heavily reliant on trade with Canada or involved in steel and aluminum markets. This might limit upside potential in these sectors in the short term.
SFIX
Positive
Stitch Fix’s strong earnings and pivot toward AI-driven services could attract investor interest, suggesting potential for growth as consumers seek innovative online retail solutions. This may enhance market confidence in retail tech.
GRPN
Positive
Groupon's positive revenue guidance could indicate a rebound in consumer spending in the e-commerce sector, positioning the stock favorably in a recovering market.
FOA
Negative
Finance of America’s significant drop in stock price due to disappointing earnings signals potential ongoing difficulties in the financial services sector, indicating a lack of confidence among investors.
Related News
Here’s the inflation breakdown for February 2025 — in one chart
Mar 12, 2025, 10:30 AM
The consumer price index rose 2.8% in February from 12 months earlier. Inflation decelerated but economists fear tariffs will stall progress.
CPI inflation data cools in February, easing investor fears about the health of the US economy
Mar 12, 2025, 9:33 AM
February's Consumer Price Index (CPI) report showed inflation pressures eased in February, calming some fears about the health of the US economy during a rocky few weeks for markets.