As the fears of recession continue to loom not just over the US economy but the world at large, some positive piece of information emerged from the macroeconomic realm.
After a surprise jump in the inflation rates for January, the US reported a dip in the rate of inflation for the month of February.
US Inflation Drops
The US inflation rate, usually measured by the Consumer Price Index (CPI), dipped to 2.8 per cent from the previous month’s 3.0 per cent.
This, however, still remains above the US Federal Reserve’s rate of 2 per cent. This is the first time since September 2024, that the inflation rate has slowed down.
The US secondary markets that have been battered by fears of recession, which in turn were further exacerbated by US President Donald Trump’s erratic tariffs, found some relief in these numbers.
The marquee US indices fared better than they had in the first half of the week.
Dow Jones Industrial Average
The Dow Jones Industrial Average ended the day in red, however, with narrow loses of 0.20 per cent or 82.55 points.
This took the overall value of the index to 41,350.93 points.
S&P 500
Apart from Dow Jones, the other benchmark indices had a far better day at the bourse.
The S&P 500 ended the day in green with some major gains. The index closed with gains of 0.49 per cent or 27.23 points. The S&P 500 closed for the day expanding to 5,599.30 points.
Nasdaq Composite
The tech-heavy Nasdaq Composite, closed the day with major gains.
The Nasdaq index that suffered majorly, with losses of over 4 per cent in one single session on Monday, made gains of 1.22 per cent or 212.35 points. This took the overall value of the index to 17,648.45.
Donald Trump Reacts To Inflation Drop
Donald Trump reacted to these development with a post on Truth Social. In his post, Trump shared a screegrab of an article which said that the country’s inflation rate had dipped
