Inflation Eases, Tech Stocks Surge, Trade Tensions Rise

March 12, 2025, the U.S. Consumer Price Index (CPI) report revealed a slight decline in both monthly and yearly inflation rates, with a 0.2% month-over-month increase and a 2.8% year-over-year rise. This moderation in inflation may influence the Federal Reserve's future monetary policy decisions, potentially affecting interest rate cuts and impacting financial markets. Meanwhile, the ongoing trade tensions between the United States and Canada have resulted in Canada imposing retaliatory tariffs worth CAD 29.8 billion, targeting U.S. products in response to Trump's increased steel and aluminum tariffs. This escalation in trade conflict could affect economic growth and inflation in both countries, potentially influencing market dynamics. On the same day, the S&P 500 index rose by 0.49%, the Dow Jones Industrial Average fell by 0.20%, and the Nasdaq Composite index increased by 1.22%.

Based on the current market performance, the technology sector and the non-essential consumer goods sector outperformed the S&P 500. Notably, the technology sector demonstrated exceptional performance. Conversely, the utilities sector, healthcare sector, essential consumer goods sector, materials sector, industrial sector, and real estate sector moved in the opposite direction of the S&P 500.

Nvidia shares rose 6.43% as investors anticipate the company's GTC conference, which is expected to highlight AI growth opportunities and boost stock recovery. TSMC shares rose 3.63%. Oracle shares rose 4.65% as the company is expected to place massive orders for Nvidia's new artificial intelligence chip. Tesla shares rose 7.59% following President Trump's endorsement and purchase of a Tesla vehicle, which boosted investor confidence.

CervoMed's stock surged by over 161%, driven by a Buy rating and a $12.00 price target set by Canaccord Genuity analyst. ZenaTech's shares rose by nearly 63%, fueled by the expansion of its drone survey network, which is in high demand across construction, agriculture, and infrastructure sectors. Meanwhile, Health In Tech's stock plummeted by over 82%, indicating a significant drop in investor interest. Springview's shares also declined by nearly 79%, following substantial financial losses reported in their latest earnings announcement.

U.S. tech stocks experienced gains as NVIDIA shares rose 7%, continuing a previous session's 1.7% increase. This boost in technology stocks contributed to the Nasdaq Composite's rise of over 2%, following a sell-off driven by concerns over Chinese startup DeepSeek's impact on AI investments. Meanwhile, Tesla shares climbed more than 5% after a cooler-than-expected CPI report calmed inflation concerns. The CPI showed a 0.2% month-over-month increase, below the forecasted 0.3%, and a year-over-year rate of 2.8%, as opposed to the 2.9% forecast, indicating easing inflation pressures. This data may influence the Federal Reserve's rate decisions, with traders now anticipating potential rate cuts. Additionally, the U.S. MBA reported a decline in the 30-year mortgage rate to 6.67%, further stimulating refinancing activity.