Stocks are ripping higher — especially in tech — Wednesday morning as investors react to better-than-expected inflation numbers. But uncertainty over Trump’s escalating trade war is keeping things volatile.
Inflation Cools — But Will It Last?
The latest Consumer Price Index report showed that core inflation rose just 3.1% in February, down from 3.3% the month before — marking the lowest yearly increase since April 2021.
The year-over-year number was also down, 2.8% vs. 3.0% a year ago.
That’s exactly what the market wanted to see, easing fears of higher-for-longer interest rates.
Trade War Tensions Keep Markets on Edge
But just as traders celebrate cooling inflation, Trump’s latest tariffs are taking effect — slapping a 25% tax on steel and aluminum imports from Europe. In response, the EU is firing back with tariffs on $28 billion worth of U.S. goods starting in April.
Trump, for his part, isn’t worried, saying he doesn’t see the U.S. heading into a recession.
Markets, however, aren’t so sure.
FMC Corp. (FMC) Moving Higher
FMC Corp. (FMC) has bucked the recent stock market fall and has been moving up lately.
After getting hammered last year, the stock is bouncing back as demand surges for agricultural chemicals. With global food supply chains under pressure and farmers looking to maximize crop yields, FMC’s products are in high demand. Plus, easing input costs and better-than-expected earnings have given the stock some serious momentum.
At the same time, our Newton Indicator is in bullish mode. After moving up since the big gap down, it’s gone from red to yellow to now green…
This indicates it has positive momentum and could be ready to make a run higher.
Hasbro (HAS) Turning Bearish
On the other side, Hasbro’s (AME) momentum has turned negative.
It’s a classic case of a struggling consumer stock in a shaky economy. With consumer spending tightening, demand for toys and games just isn’t what it used to be.
On top of that, the company’s shift toward digital gaming hasn’t been enough to offset declining traditional toy sales, and Wall Street isn’t feeling patient.
And after a brief surge up, the Newton Indicator shows momentum has just gone back to red. It looks ready to roll over and head downward.
Bottom line?
For now, stocks are rallying.
But with trade tensions heating up, expect more volatility ahead.
Graham Lindman
Graham Lindman Trading
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P.S. Ready for a Deep Dive Into Everything Coming Our Way for Q2?
Roger Scott is just moments away from diving into his outlook for Q2 — specifically how the markets reacted to this morning’s CPI number…
He’s been reviewing the latest institutional money flow data this morning, and what he’s seeing contradicts what most analysts are saying. With all the talk about inflation and interest rate decisions, many traders are missing some crucial factors that could shape the next quarter.
At 2 PM ET, he’ll be going LIVE to show you exactly where the smart money is moving, based on the same tracking strategy that’s delivered a 94.1% success rate on over 300 winning trades.
As always, past performance doesn’t guarantee future results, and there are risks involved. But this session will give you the roadmap for navigating Q2, especially if the CPI news turns out to be a non-event.
Make sure to join him at 2 o’clock sharp. This isn’t just another market update — it’s the strategy he’s using to navigate Q2. See you soon!
Stated results are from hypothetical options applied to real published trades from 10/30/23 – 3/5/2025. The result was a 94.1% win rate on 304 trades, an average return of 11.2% including winners and losers and average hold time of less than 24 hours. Performance is not indicative of future results. Trade at your own risk and never risk more than you can afford to lose.
