LIVE MARKETS-Nasdaq, S&P mount comeback after CPI data

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NASDAQ, S&P MOUNT COMEBACK AFTER CPI DATA

The Nasdaq .IXIC and S&P 500 .SPX put a stop to the recent bleeding on Wednesday with the help of an inflation reading that allayed some inflation worries and helped rule out any possibility the Federal Reserve may need to resume rate hikes at some point.

U.S. consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war.

"They are unexpectedly good numbers compared to last month," said Jeanette Garretty, chief economist at Robertson Stephens in San Francisco.

"I don't expect that there's a need for (the Fed) to do anything in the next meeting, but it will allow them to talk intelligently about what they will do in the remainder of this year. And I think it probably means that they're going to signal that, as they earlier forecasted, there will be a cut or two in interest rates sometime this year."

Still, trading was choppy, with stocks coming out of the gate with solid gains before losing steam, with both the S&P and Dow .DJI dipping into negative territory as tariff concerns and uncertainty about a potential ceasefire in Ukraine add to volatility, with the Dow remaining in the red to the closing bell.

Donald Trump threatened to escalate a global trade war with further tariffs on European Union goods, as major U.S. trading partners said they would retaliate for trade barriers already erected by the U.S. president.

Russia said it was awaiting details from Washington about a proposal for a 30-day ceasefire in Ukraine before responding, while U.S. Secretary of State Marco Rubio hoped a deal would be struck within days.

Gains were led by tech .SPLRCT, communication services .SPLRCL and consumer discretionary .SPLRCD, the three worst performing of the 11 major S&P sectors this year, while defensive consumer staples .SPLRCS was the worst performing group.

The S&P 500 is now down 8.9% from its February 19 record close after briefly falling slightly more than 10% from that level during the session on Tuesday.

Here is Wednesday's closing snapshot:

(Chuck Mikolajczak/ Medha Singh)

FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:

WHAT'S NEEDED TO PUSH THE 10-YEAR BUND ABOVE 3% - CLICK HERE

NOT SINCE THE 2022 BEAR MARKET WAS ENDING HAS INVESTMENT ADVISOR SENTIMENT BEEN THIS BAD - CLICK HERE

EARLY GAINS FADE AS CPI ENTHUSIASM WANES - CLICK HERE

BOING! COOL CPI REPORT PUTS A SPRING IN WALL STREET'S STEP - CLICK HERE

U.S. STOCK FUTURES CHEER COOLER-THAN-EXPECTED CPI - CLICK HERE

EUROPEAN LUXURY IN A U.S. SLOWDOWN - CLICK HERE

WALL ST'S WOBBLES: RECESSION OR ROTATION? - CLICK HERE

BUY THE DIP, SAYS BARCLAYS ON DEFENCE - CLICK HERE

CEASEFIRE VIBES BOOST BANKS AND BUILDERS - CLICK HERE

BEFORE THE BELL: EUROPE RECOVERS, EYES ON INFLATION, EARNINGS - CLICK HERE

UKRAINE TALKS LIFT EURO BUT TARIFF WORRIES LINGER - CLICK HERE