S&P 500 Gains and Losses Today: Tech Stocks Bounce Back After Soft Inflation Data

Major U.S. equities indexes were mixed after the latest Consumer Price Inflation (CPI) data revealed a sharper-than-anticipated downtick in inflation in February. However, economists have forecast that U.S. tariff policies could contribute to price pressure over the coming months.

The S&P 500 added 0.5%, while the Nasdaq bounced 1.2%, bolstered by outperformance in the tech sector. The Dow closed the midweek session 0.2% lower.

Tesla (TSLA) shares moved higher for the second straight session, jumping 7.6% to notch the strongest performance of any S&P 500 stock on Wednesday. Tesla received a show of support on Tuesday from President Donald Trump, who held a promotional event for the electric vehicle (EV) maker at the White House. However, analysts at Evercore and Guggenheim lowered their price targets on Tesla stock, citing concerns about the company’s self-driving ambitions and vehicle delivery capacity.

The softer-than-expected CPI report helped boost a variety of stocks in the technology sector, as lower inflation bodes well for reduced borrowing costs, which can help tech companies fund their growth plans. In addition, reports of a proposal by Taiwan Semiconductor Manufacturing Co. (TSM) to form a joint venture with U.S. chipmakers to operate Intel (INTC) foundries provided a lift to the semiconductor industry. Shares of memory and data storage provider Micron Technology (MU) advanced 7.4%, while shares of AI chip behemoth Nvidia (NVDA) gained 6.4%.

Palantir Technologies (PLTR) stock jumped 7.2% after the data analytics software firm revealed a slate of new customers, including drugstore operator Walgreens (WBA) and brewing giant Heineken. Those companies will join existing Palantir clients at the company’s artificial intelligence (AI) event on Thursday, which is intended to showcase how customers leverage Palantir’s AI platform.

Discount retailers saw their share prices come under pressure on Wednesday. Dollar Tree (DLTR) shares fell 5.7%, posting the steepest drop in the S&P 500. Wells Fargo analysts recently slashed their price target on Dollar Tree stock, noting that the company faces pressure related to macroeconomic uncertainty, potential tariff effects, and proposals to cut food assistance for low-income families under the Supplemental Nutrition Assistance Program (SNAP). Shares of Target (TGT) and Dollar General (DG) fell 4.9% and 4.8%, respectively.

Shares of alcoholic beverage maker Brown-Forman (BF.B) tumbled 5.1%. The European Union’s decision to levy 50% tariffs on whiskey imports from the U.S., which will take effect on April 1, presents a sales challenge in a key market for the Jack Daniels maker.

United Airlines (UAL) shares lost 4.7% after the carrier said it would reduce capacity later in 2025 and proceed with the early retirement of 21 aircraft. The moves come after rival Delta Air Lines (DAL) cut its guidance, citing softness in travel demand.