US inflation data released: How will markets react?
The US Department of Labor has released consumer inflation data for February. According to the released data, inflation rates came in below market expectations.
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According to ministry data, the consumer price index (CPI) rose by 2.8 percent on an annual basis. Economists' expectations were for this rate to be at the 2.9 percent level. Annual inflation was reported at 3.0 percent in January.
Price increases also remained below estimates on a monthly basis. Consumer prices rose by 0.2 percent in February. Market analysts had projected this rate to be 0.3 percent.
Core inflation, calculated excluding food and energy prices, was measured at 2.8 percent on an annual basis and 0.2 percent on a monthly basis. Economic experts had estimated that core inflation would increase by 3.2 percent annually and 0.3 percent monthly.
Looking at the details of the data, it was determined that energy prices increased by 0.2 percent on a monthly basis but fell by 0.2 percent on an annual basis. Food prices showed an increase of 0.2 percent monthly and 2.6 percent annually.
During the same period, real average weekly earnings rose by 0.1 percent.
SHARP DECLINE IN NASDAQ 100 INDEX
Technology stocks in US stock markets suffered historic losses. While the Nasdaq 100 index lost a total of 1.75 trillion dollars in two days, the Bloomberg Magnificent 7 Index fell by 5.4 percent.
Tesla shares lost 15 percent of their value, experiencing a total decline of 45 percent within 2025. Nvidia fell by 5.1 percent, losing 1 trillion dollars in market value over the last two months.
Experts stated that the sharp decline in the technology sector accelerated after statements from US President Donald Trump and officials signaling a slowdown in the economy. Trump announced in his election campaign that he plans to finance tax cuts in the domestic market by imposing additional taxes on imports. These statements led to a repricing of risky assets.
5-day change chart of the Nasdaq 100 index Source: Marketwatch
TECHNOLOGY STOCKS PLUMMET
Technology companies have recorded significant gains in the stock market in recent years. As of 2024, the market value of Nvidia, Microsoft, and Apple exceeded 3 trillion dollars, while Amazon and Alphabet also approached this level. Tesla once reached a market value of 1 trillion dollars.
According to Bloomberg's report, the release of the R1 model developed by the China-based artificial intelligence company DeepSeek in mid-February caused a loss of value in the shares of US technology firms. Since March 10, major US technology companies have declined by rates ranging from 4 to 25 percent.
Economists warned that the inflation data to be released today could increase panic selling in the markets. However, it was stated that with the inflation data remaining below expectations, this possibility has decreased.