Global markets experienced mixed reactions on February 13, 2025, as U.S. inflation data and President Donald Trump’s decision to delay reciprocal tariffs influenced investor sentiment. U.S. stocks rose, with the Nasdaq Composite up 1%, while the Dow Jones Industrial Average and S&P 500 gained 0.3% and 0.6%, respectively. Asian and European markets also responded positively to the developments.
The Producer Price Index (PPI) showed wholesale inflation rose 0.4% in January, slightly above economists’ expectations but below December’s 0.5% increase. Core PPI, excluding food and energy, rose 0.3%, signaling a deceleration in price pressures. This data pushed market expectations for a Federal Reserve rate cut to the end of the year, easing concerns about aggressive monetary tightening.
Investors welcomed Trump’s decision to delay implementing reciprocal tariffs on countries that tax U.S. imports. While the tariffs remain a possibility, the delay provided temporary relief to markets. Cisco Systems and Applovin saw significant gains after strong earnings reports, while Reddit shares fell due to disappointing user growth.
