Stocks Rebound, Commodities Weaken, and Inflation Eases

Image Source : Krish Capital Pty Ltd

Index Update

The S&P 500 and Nasdaq rose 0.49% and 1.22%, respectively, on Wednesday, ending a two-day losing streak, while the Dow fell 0.2% for its third straight decline. Tech stocks led the rebound, driven by Nvidia (+6.4%), Tesla (+7.6%), and Meta (+2.3%). The rally was fueled by a softer-than-expected inflation report, easing economic concerns, while Trump's steel and aluminum tariffs took effect, prompting Canadian retaliation.

Market Movers

On Wednesday, the top gainers were Groupon, Inc. (+25.49%), followed by Stitch Fix, Inc. (+12.43%). On the contrary iRobot Corporation (-36.45%) and Zynex, Inc. (-32.86%) declined the most the same day.

Commodities Update

WTI crude oil futures declined to around $67.5 per barrel after a 2% gain in the previous session, as escalating global trade tensions weighed on the market. Concerns over tariffs, weak Chinese demand, and increased OPEC+ output, including Kazakhstan exceeding its quota, added pressure. However, oil found support from strong US demand and slowing inflation, with government data showing a significant drop in gasoline inventories and a smaller-than-expected rise in crude stockpiles.

Macro Update

US producer price inflation is expected to ease in February 2025, with monthly PPI rising 0.3%, down from 0.4% in January, and annual PPI slowing to 3.3% from 3.5%. Core PPI is projected to remain steady at 0.3% monthly but decline to 3.5% annually from 3.6%.

Futures Update

US stock futures rose on Thursday, extending the previous session’s tech-led rally. Intel surged over 10% after appointing Lip-Bu Tan as CEO, while Adobe fell 4% due to a weaker-than-expected earnings forecast.

Bitcoin fell 0.80% to $83,070 on March 13, down 14.81% over the past four weeks but still up 17.54% over the past year.

On Wednesday, stocks rebounded after early volatility, with the Nasdaq gaining 212.35 points (1.2%) to reach 17,648.45 and the S&P 500 rising 27.21 points (0.49%) to 5,599.29, recovering from their lowest levels in six months. In contrast, the Dow dipped 82.55 points (0.2%) to 41,350.93. The S&P 500 is currently testing key support levels, suggesting a potential relief rally, with the 14-period RSI below the neutral midpoint indicating a possible rebound. Significant resistance is at 5,850, while support is around 5,537.