Market Monitor March 12 ( Tesla, Nvidia UP, Apple, United Airlines DOWN)

Stock Market Rebounds as Inflation Eases, But Trade Worries Persist

Wall Street experienced a volatile session on Wednesday, ultimately closing higher as an encouraging inflation report lifted investor sentiment. The Nasdaq surged 1.1%, while the S&P 500 gained 0.5%. However, the Dow Jones Industrial Average lagged, slipping 0.2% for its third consecutive losing session.

Inflation Report Offers Relief, But Rate Cuts Remain Uncertain

The latest Consumer Price Index (CPI) data showed U.S. inflation slowing to 2.8% in February, down from 3% the previous month. This slight moderation raised hopes that the Federal Reserve might consider cutting interest rates later this year.

However, analysts cautioned that the Fed would need more than just one favorable inflation report before making any policy changes. Investors are still pricing in potential rate cuts starting in June, with expectations of 67 basis points of reductions by the end of 2025.

Market Turbulence Amid Trade Tensions

Despite the boost from inflation data, trade concerns continued to weigh on markets. Canada retaliated against U.S. tariffs on steel and aluminum by imposing levies on $21 billion worth of American goods. This move sparked fears of an escalating trade war, temporarily erasing market gains in afternoon trading before stocks rebounded.

Tech Sector Leads the Rally

Technology stocks, which had been under pressure in recent sessions, led Wednesday’s recovery. TESLA (TSLA | +7.6) surged, bouncing back from a sharp 15% drop earlier in the week. Nvidia (NVDA | +6.2%) also climbed, while Intel (INTC |+ 4.55%) soared over 10% in after-hours trading after announcing a new CEO. Other major tech names, including Microsoft (MSFT | +0.74%), Amazon (AMZN | +1.17%) , and Alphabet (GOOG | +1.82%), saw gains, but Apple (AAPL |-1.75%) struggled, falling nearly 2%.

Broader Market Trends

Bond Yields: The 10-year Treasury yield inched up to 4.32% from 4.29%, reflecting persistent economic uncertainty.

Commodities: Gold rose 0.8% to $2,945 per ounce, while oil prices climbed 2.2% to $67.70 per barrel.

Cryptocurrency: Bitcoin rebounded to $83,600 after dipping as low as $76,600 earlier in the week.

Airline Stocks: The sector remained weak as airlines cut forecasts due to declining travel demand. Delta (DAL | -2.96%), American Airlines (AAL | -4.62%), and United Airlines (UAL | - 4.73%) all posted losses of around 3-5%.

Market Outlook: Caution Remains

While Wednesday’s gains provided some relief, markets remain volatile. The S&P 500 is still down nearly 9% from its record high, and the Nasdaq remains more than 12% below its December peak. Concerns over trade policies, economic growth, and the Fed’s stance on interest rates continue to influence investor sentiment.

With inflation cooling but trade tensions rising, the coming weeks will be crucial in determining whether the market can sustain its recovery or faces further turbulence ahead.

Daily Market Analysis – March 12, 2025 (After Market Close)

SPY (S&P 500 ETF)

• Short-Term Trend: Down (no change)
• Long-Term Trend: Neutral (no change)

Key Technical Levels:

• Resistance: Around 575
• Support: Around 550-560

QQQ (Nasdaq-100 ETF)

• Short-Term Trend: Down (no change)
• Long-Term Trend: Neutral (no change)

Key Technical Levels:

• Resistance: Around 500
• Support: Around 445 (potential bounce area)

IWM (Russell 2000 ETF)

• Short-Term Trend: Down (no change)
• Long-Term Trend: Down (no change)

Key Technical Levels:

• Resistance: Around 215
• Support: Around 195-200 (historical buying interest)

Sector Analysis

• Next update (weekly) on friday, march 14

Market Breadth Analysis for March 11, 2025

March 12, 2025, showed a strong improvement in market breadth compared to the previous two days. Advancing stocks outpaced declining ones, fewer stocks experienced significant declines (over 4%), and new lows decreased, indicating potential stabilization.

However, long-term trends remain weak, as seen in the still-high percentage of stocks below key moving averages and the elevated declining stock percentage on a weekly and monthly basis.