US Stocks Struggle as CPI Inflation Slows in February

2025-03-13 | Daily Analysis , Daily Insight , FTSE China A50 Index , HK Stocks , Securities , US Stocks

US Stocks Struggle as CPI Inflation Slows in February

Market Recap

On Wednesday, US stocks closed mixed, with the Dow falling for a third consecutive session. Softer CPI data eased recession concerns, fueling a rebound in beaten-down tech stocks and pushing the Nasdaq higher. Meanwhile, Trump’s 25% tariffs on all imported steel and aluminum took effect, and markets closely watched developments on a potential Ukraine ceasefire.

The US Labor Department reported that, after seasonal adjustments, the February Consumer Price Index (CPI) rose 2.8% year-over-year, below expectations of 2.9% and the previous reading of 3.0%.

Excluding food and energy, core CPI increased 3.1% YoY, lower than the forecasted 3.2% and January’s 3.3%.

The Bureau of Labor Statistics noted that nearly half of the overall CPI increase was driven by housing costs.

Despite slowing inflation, the report indicated that price levels remain above the Federal Reserve’s 2% target, potentially limiting the Fed’s ability to cut rates quickly if economic weakness emerges. Policymakers fear that easing too soon could reignite inflationary pressures.


US Stocks Market Highlights

Major tech stocks mostly gained, with Tesla surging over 7%, Nvidia up 6%, and Meta and Broadcom rising more than 2%. Apple was an outlier, slipping 1%.

Leading gainers: Semiconductors, metals, and automakers—Micron jumped 7%, Century Aluminum rose 5%, Intel and AMD gained 4%+, while Lucid and Rivian climbed 2%+.

Biggest laggards: Food & beverage, coal, and chemicals—Olin tumbled 5%, Hershey and Mondelez dropped 4%, and Dow Chemical slid 2%.

Chinese stocks were mixed, with the Nasdaq Golden Dragon China Index falling 1.21%. 21Vianet slumped 7%, while Hesai, Bilibili, and XPeng lost over 6%.

US Stocks Struggle as CPI Inflation Slows in February
(S&P 500 Index, 1-day chart)
  • Dow Jones: ↓ 82.55 pts (-0.20%) to 41,350.93
  • Nasdaq: ↑ 212.35 pts (+1.22%) to 17,648.45
  • S&P 500: ↑ 27.23 pts (+0.49%) to 5,599.29

Hong Kong Stocks Market Highlights

The Hang Seng Index opened higher but reversed course, closing lower as tech stocks slumped. Kuaishou fell over 5%, Bilibili lost nearly 4%, while Alibaba and Meituan each dropped over 2%.

Banking stocks gained, with China Merchants Bank up nearly 2%, while gold miners rallied, led by Zijin Mining’s 2% increase.

Gold stocks rose as spot gold hit $2,944.51/oz, the highest since Feb 25. According to the World Gold Council, global central banks bought 18 tons of gold in January, equivalent to nearly 20,000 ounces daily, sustaining gold’s three-year uptrend.

US Stocks Struggle as CPI Inflation Slows in February
(Hang Seng Index, 1-day chart) 
  • Hang Seng Index: ↓ 0.74% to 23,426.80
  • Hang Seng Tech Index: ↓ 2.17% to 5,718.54
  • China Enterprises Index: ↓ 0.81% to 8,611.68

A50 & China A-Share Market Highlights

Chinese A-shares struggled, opening lower and drifting downward. Over 4,400 stocks declined, with total turnover reaching ¥10.49 trillion.

Top gainers: Coal, aluminum, biotech, and state-owned asset restructuring stocks.
Biggest losers: Robotics, automation, and high-tech materials.

US Stocks Struggle as CPI Inflation Slows in February
(SSE Composite Index, 1-day chart) 
  • Shanghai Composite: ↓ 0.44% to 3,357.02
  • Shenzhen Component: ↓ 1.02% to 10,732.4
  • ChiNext Index: ↓ 0.99% to 2,169.55

Risk Disclosure

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Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein. 

Disclaimer

This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it. 
The above information should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution. 

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