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Index Update

The Dow fell 0.5%, S&P 500 dropped 0.27%, and Nasdaq edged up 0.03% after a hotter-than-expected inflation report, reinforcing stable Fed rates. Tariff exemption comments from House Speaker Mike Johnson helped sentiment. Investors now await jobless claims, PPI data, and earnings from Airbnb, Coinbase, and Palo Alto Networks.

Market Movers

On Wednesday, the top gainers were Applovin Corporation (+28.72%), followed by SBC Medical Group Holdings Incorporated (+24.61%). On the contrary,  The Trade Desk, Inc. (-29.71%) and Hertz Global Holdings, Inc (-14.32%) declined the most the same day.

Commodities Update

WTI crude oil fell 1% to USD 70.5 per barrel, nearing a seven-week low, as Russia-Ukraine peace talks raised hopes of easing sanctions on Russian oil. Trump’s tariff threats and rising US crude inventories added pressure, while strong Asian demand and OPEC+ sanctions helped limit the decline.

Macro Update

The dollar index hovered around 107.8 as traders assessed Trump's trade policies, including upcoming reciprocal tariffs and recent levies on aluminum, steel, and Chinese goods. Tariffs on Mexico, Colombia, and Canada were temporarily suspended. Stronger U.S. inflation data reduced Fed rate-cut expectations, while the euro gained on Ukraine peace hopes.

Futures Update

US stock futures rose ahead of earnings reports and inflation data. Reddit dropped 13% after weak user figures, while Dutch Bros jumped 25% on strong sales and earnings.

U.S. stock markets experienced a volatile session on Wednesday. Initially, stocks fell sharply, but then staged a recovery. The Nasdaq managed a slight gain, closing at 19,649.95, up 6.09 points (less than 0.1%) after having been down as much as 1.2%. However, the Dow Jones Industrial Average declined by 225.09 points (0.5%) to 44,368.56, and the S&P 500 dropped 16.53 points (0.27%) to 6,051.98. Technical analysis suggests the S&P 500 is encountering resistance around the 6,100 level. The Relative Strength Index (RSI) indicates a possible short-term pullback. Analysts are watching 6,100 as resistance and 5,900 as support.

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