U.S. Stocks Give Back Ground After Initial Move To The Upside

U.S. stocks gave back early gains after a softer-than-expected February CPI report briefly boosted hopes for near-term Federal Reserve rate cuts. The Nasdaq remained modestly higher, while the S&P 500 was nearly flat and the Dow moved into negative territory. Investors initially welcomed 0.2% monthly CPI and 2.8% annual headline inflation, both below estimates, along with core CPI also rising 0.2% versus forecasts of 0.3%. However, sentiment weakened as new trade-policy tensions resurfaced, with the EU and Canada announcing retaliatory tariff measures after U.S. steel and aluminum import duties took effect. Sector performance was mixed: airlines and telecoms fell sharply, while semiconductors outperformed. Overall, the session reflected a tug-of-war between favorable inflation data and growing concern over tariffs and broader policy uncertainty.