Market Update for March 12, 2025

Big Apple Bounce: Nasdaq’s Resurgence Amid Inflation Eases and Trade Tariff Troubles

Traders work on the floor of the New York Stock Exchange on March 6, 2025.

NYSE

The city never sleeps, and neither does the New York Stock Exchange. Amidst the bustling streets of Manhattan, the Nasdaq Composite soared on Wednesday, buoyed by a soft inflation report that had traders heaving a sigh of relief. It seems that after weeks of turbulence, some of New York’s finest tech stocks began clawing their way back from the abyss.

Tech Comeback: The New York Story

The Nasdaq, with its glittering array of tech darlings, tacked on a solid 1.22%, closing the day at a cool 17,648.45. The S&P 500 wasn’t left in the dust, climbing 0.49% to finish at 5,599.30. Even though the Dow Jones took a tiny tumble of 82.55 points, settling at 41,350.93, spirits were up in the tech sector. New York City buzzed with excitement as titans like Nvidia surged 6.4% and AMD rose over 4%. Meanwhile, Meta Platforms ticked up 2%, and Elon Musk’s Tesla soared more than 7%.

Inflation in Check? New Yorkers Are Watching

The consumer price index, a comprehensive gauge of costs throughout our beloved U.S. of A., creeped up by just 0.2% in the past month. At the annual level, inflation marked a neat 2.8%, managing to dip below Dow Jones’s expectations of 2.9%. Core CPI—sneakily sidestepping those pesky food and energy costs—hiked 0.2% for the month and 3.1% over the year, again slipping under those projections. Could this mean relief is in sight from the Federal Reserve?

"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," chimed in Dave Grecsek from Aspiriant Wealth Management.

Trade Drama: When Tariffs Hit, Retaliation Follows

But let’s not pop the champagne just yet. In a classic New York plot twist, President Donald Trump’s hefty steel and aluminum tariffs came into play. And neighbors, Canada, shot back with a resolute 25% tariff on over $20 billion worth of American goods. The European Union didn’t sit this one out either, laying down their own counter-tariffs on $28.33 billion worth of U.S. imports, set to kick off in April.

Market Jitters: Stock Market on the Edge

As the policy drama unfolded, the market faced mounting tension, with traders nervously eyeing a potential U.S. recession. Words like stagflation, a cocktail of stagnant growth and raging inflation, buzzed on the lips of downtown analysts. Amidst this storm, the major indices have seen bruising weeks. The Dow, S&P 500, and Nasdaq all slumped roughly 3% this week. The S&P 500 even flirted with correction territory—down 10% from a record-breaking February.

"We’re not surprised the market’s pulled down," added Grecsek. "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."

The Big Apple Resilience: A City of Fighters

In true New York fashion, the city and its financial heart grit their teeth and march on. Stocks may have been battered and concerns aplenty, yet whispers of better news hang in the crisp city air. It seems like the robust energy of the Big Apple might just have what it takes to weather this economic tempest and see brighter days. Who knows? In a town as dynamic as New York City, anything is possible.

So, until next time, keep a watchful eye on Wall Street—and if you’re walking by, don’t forget to admire the mighty bull that signifies the indomitable spirit of this metropolis.<