Wall Street Rose as Tariff Updates Alleviate Inflation Concerns

US stocks advanced on Thursday, driven by easing concerns over inflation and global trade tensions following updates on tariff plans. Despite higher-than-expected inflation data, the S&P 500 rose 0.80%, the Nasdaq gained 1%, and the Dow Jones Industrial Average climbed over 300 points. President Donald Trump signed a memorandum to review reciprocal tariffs on foreign nations but refrained from imposing any immediate levies, though he hinted at potential future tariffs, including on auto imports. In economic data, the producer price index (PPI) rose 0.40% in January 2025, surpassing expectations. However, key components of the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, signalled easing inflationary pressures.

European stocks closed sharply higher, extending their strong performance for the week. The rally was driven by robust corporate earnings and growing optimism that the Ukraine conflict might be approaching a resolution. Investors also weighed the potential impact of US tariff plans on European growth. The Eurozone’s STOXX 50 jumped 1.70% to 5 500, marking its first record-high close in 25 years, while the broader STOXX 600 climbed 1.10% to 554. Adding to the positive sentiment, President Donald Trump announced upcoming talks with Russian President Vladimir Putin to seek a resolution to the war that began in 2022.

In Asia, the Hang Seng dipped 0.20% to close at 21 814, reversing earlier gains as uncertainty over global trade weighed on sentiment. Reports indicated that India is considering a temporary tax of 15% to 25% on Chinese steel imports to protect its domestic industry. Meanwhile, Japan’s Nikkei 225 jumped 1.28% to 39 461, marking a second straight session of gains. A weaker yen boosted Japan’s export-driven industries and increased foreign investor interest, while strong corporate earnings also supported the market.

Brent crude oil futures edged down 0.20% to $75 per barrel but recovered from earlier losses as hopes of a pause in new US tariffs provided support. The oil market had been under pressure earlier in the session following reports of possible Russia-Ukraine peace talks, which raised expectations of lower supply risks. Initial concerns over reciprocal US tariffs dampened sentiment, but news that implementation could be delayed until April allowed room for negotiations, stabilizing prices.
On the local front, the FTSE/JSE All Share Index (ALSI) slipped 0.11% on Thursday, while the rand weakened to R18.51 against the {{8827|US dollar by 18h00 local time


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