Stocks rose on Wednesday after a tumultuous few days of trading, though the rally was choppy, as investors weighed lower-than-expected inflation data against concerns about President Trump’s tariff policies.
The S&P 500 index rallied at the start of trading, buoyed by data from the Bureau of Labor Statistics showing that inflation eased in February. But the momentum faded as trade tensions took center stage, briefly pulling the benchmark index into the red. By midday, it had rebounded, rising 0.5 percent for the day, while the technology-heavy Nasdaq Composite index rose 1.2 percent.
The rise in stock prices reversed some of the losses from earlier in the week and came after another turbulent trading day on Wall Street, when the White House introduced and then rolled back some of its tariffs. The whipsaw on trade policy has added to investors’ confusion over the Trump administration’s economic plans, and the path ahead on interest rates set by the Federal Reserve.
Global trade turmoil intensified on Wednesday as Mr. Trump’s across-the-board tariffs on steel and aluminum imports took effect, and the European Union and Canada responded with billions of dollars in retaliatory tariffs on U.S. exports.
Recent waves of selling have pushed the S&P 500 index down nearly 9 percent below its mid-February record. Falling more than 10 percent would signify a symbolic milestone known on Wall Street as a correction.
The Euro Stoxx 50 index, which comprises the eurozone’s largest listed companies, was up more than 1 percent on Wednesday. Shares in Britain, Germany and France all broadly gained.
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