Stock Markets Stall while Waiting for Inflation Data
Stocks are mostly flat on Wednesday after an upheaval among stocks early in the week, but new inflation data could change things.
Quick overview
- U.S. stock market indices remained mostly flat as investors await inflation reports this week.
- The Consumer Price Index for February is expected to influence inflation numbers, currently at 2.4%.
- Oracle's stock surged 9% after exceeding quarterly earnings expectations, while Nvidia showed signs of recovery.
- Rising energy prices, driven by geopolitical tensions, have led to increased oil prices, with West Texas Intermediate reaching $87 per barrel.
On Wednesday, the U.S. stock market indices mostly remained flat as they tread water and expected that this week’s inflation reports would inject some momentum into investors.
This week will see the release of the Consumer Price Index for February, which could push the inflation numbers from the current 2.4%. After a month of changing tariffs, AI stock selling pressure, and economic tightening, there is concern that the latest inflation reading will be high. The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 indices all hovered close to flat readings Wednesday morning.
Inflation is currently at one of its lowest points in months, slowly recovering from post-covid highs. However, weeks of conflict and economic instability could have taken their toll on the CPI level. March’s rising oil prices and Iran conflict will not factor into the reading, but February was a month where many of the early 2026 market gains disappeared.
AI and Energy Stocks Soared This Week
While much of the stock market remained flat, several niches performed well, and perhaps the most impactful gainer has been Oracle (ORCL). The AI company gained 9% on Wednesday following their quarterly earnings report. Oracle soundly beat expectations, bringing in more revenue for its third quarter than Wall Street and shareholders anticipated. They further excelled by increasing their financial forecast for 2027.
Nvidia (NVDA) gained 1.16% and continued to make back what it lost in February. This AI stock performed poorly during its earnings report recently but has since begun a process of recovery that has grown investor confidence and helped take pressure off of the AI niche as a whole.
Energy prices have been climbing for weeks, with the Venezuelan action briefly spiking rates and then conflict in Iran pushing them even higher. One of the biggest earners has been West Texas Intermediate, which saw its futures rise 4% and the price of a barrel of oil moved up to $87. Brent crude oil reported $91 per barrel and a 4% futures bump as well.
The price of oil may be declining soon, since the International Energy Agency announced this week that it will be releasing reserves of emergency oil. This should boost inventory at a time when reserve levels are at risk and ease fears that there will be a dwindling supply while conflict continues in the Middle East.
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