Today’s session on Wall Street proved to be a nerve-wracking one, with tech stocks bouncing back, driving a significant recovery in the Nasdaq, while the Dow Jones fluctuated throughout the day.

As a result, the Dow Jones closed in negative territory, down 0.20% at 41,350 points, while the S&P 500 climbed 0.49% to 5,599 points, and the Nasdaq surged 1.22% to 17,648 points.

That said, the weekly performance remains deeply negative for all indices, with losses exceeding 3%. The Nasdaq has officially entered correction territory, and the S&P 500 is not far behind.

On a monthly basis, the S&P 500 has dropped by 8%, the Nasdaq by 11.3%, and the Dow by 6.6%.

In the bond markets, the 10-year yield climbed to 4.318%, while the 2-year yield rose to 3.999%.

Investors Juggle Conflicting Signals from Inflation and Trump’s Trade Policies

Investors had to navigate mixed signals from inflation data and Trump’s trade policy decisions.

The better-than-expected inflation report for February, which came in at 2.8% versus the projected 2.9%, offered some relief to the markets. Despite this, inflation remains well above the Fed’s 2% target, keeping concerns alive.

Investors viewed the inflation slowdown as a positive sign, suggesting that price pressures are moving in the right direction despite the economic uncertainty created by White House policies. Many now assume the Fed will remain cautious, delaying its first rate cut of the year until the summer.

On the other hand, Trump’s tariff storm continues to weigh on major index-heavy stocks, especially as Canada and the European Union have moved forward with retaliatory measures.

“The lower-than-expected CPI figure gave the markets a breath of fresh air, but the Fed is in no rush to cut rates,” noted Ellen Zentner of Morgan Stanley Wealth Management, clarifying that “no one should expect immediate rate cuts from the Fed.”

Tech Stocks Lead Market Recovery – Nvidia, AMD, Meta, and Tesla Shine

Despite recent sell-offs, the latest market rebound offered significant investment opportunities, particularly in the tech sector, which had suffered the steepest losses.

It is no coincidence that the recovery was concentrated in tech stocks, with Nvidia, AMD, Meta Platforms, and Tesla standing out.

Tesla, in particular, is having a rough year, as Musk’s involvement with government affairs and declining international sales have weighed on the company’s performance. Notably, Tesla’s stock is trading nearly 50% lower than its all-time high recorded last December, during the post-election Trump trade rally.

One exception to the tech recovery was Apple, which faced downward pressure after Morgan Stanley lowered its price target.

Biggest Losers – Novo Nordisk, Eli Lilly, and Retail Stocks Under Pressure

At the other end of the spectrum, Novo Nordisk was among the biggest losers of the day, after news broke that Roche had partnered with Zealand Pharma to develop new treatments in the same category, increasing competition for the Danish pharmaceutical giant.

Eli Lilly also came under pressure, as it remains a major player in the same sector. However, the same deal sparked a spectacular rally in Zealand Pharma’s stock, proving to be a major win for the company.

Meanwhile, retail stocks like Walmart and Target declined, reflecting concerns over consumer spending trends that could weigh on their financial performance.

PepsiCo and Sunrun also fell into negative territory, following downgrades by Jefferies.