NEW YORK — Wall Street ended mixed Wednesday as investors weighed cooling inflation against escalating global trade tensions. The S&P 500 and Nasdaq Composite posted gains, while the Dow Jones Industrial Average slipped.

Market Performance

• S&P 500: Rose 0.42% to close at 5,595.37.
• Nasdaq Composite: Advanced 0.97%, ending at 17,604.11.
• Dow Jones Industrial Average: Declined 0.15%, settling at 41,369.88.

Inflation Data Eases Market Concerns

The Labor Department reported that the Consumer Price Index (CPI) increased by 0.2% in February, bringing the annual inflation rate to 2.8%. This figure was slightly below economists’ expectations of 2.9% and lower than January’s 3% rate. The data suggests inflationary pressures may be easing, potentially influencing the Federal Reserve’s stance on interest rates.

Trade Tensions Escalate

The Biden administration announced 25% tariffs on imported steel and aluminum, prompting immediate retaliation from Canada and the European Union. Canada imposed reciprocal tariffs on $30 billion worth of U.S. goods, while the EU plans to introduce countermeasures on €26 billion of U.S. products in April. The escalating dispute raises concerns about potential disruptions to global supply chains and corporate earnings.

Sector Highlights

• Technology: The sector led market gains, with Nvidia jumping over 5% and Tesla rallying more than 7%. The strength in semiconductor and electric vehicle stocks helped offset losses in industrials and financials.
• Industrials: Companies with high exposure to international markets struggled as trade concerns weighed on investor sentiment. Boeing and Caterpillar both saw declines due to fears of retaliatory tariffs affecting global operations.

Corporate Developments

• Intel Corporation: Shares climbed 3.5% after reports surfaced that Taiwan Semiconductor Manufacturing Company (TSMC) proposed a joint venture with U.S. chipmakers, including Nvidia and AMD, to operate Intel’s foundry division.
• PepsiCo Inc.: Stock fell 2.3% after Jefferies downgraded its rating from “buy” to “hold,” citing concerns over narrowing profit margins in an increasingly competitive market.

Market Sentiment and Outlook

Investors remain cautious as they balance the prospect of lower inflation with the risk of a prolonged trade war. While easing inflation supports hopes for potential interest rate cuts, uncertainty surrounding global trade policy continues to cloud the market’s outlook.

Looking ahead, market participants will closely watch upcoming economic data and corporate earnings reports for further indications of economic strength. Trade negotiations will also play a critical role in shaping investor sentiment in the coming weeks.