Why Is the US Stock Market Down Today?

The US stock market is showing a small red tick today, down 0.03% at press time, but it is not all bad. March’s Consumer Price Index (CPI), a measure of price changes, came in hot at 3.3% year over year. Yet soft core inflation and a strong AI-driven Nasdaq rally kept the damage contained.

Three forces shaped the session. All three connect to one question. Will war-driven headline inflation or softer underlying prices set the tone for April?

1. March CPI Hits 3.3% as Iran War Energy Costs Surge Through

The Bureau of Labor Statistics reported headline CPI rose 0.9% month over month and 3.3% year over year. That marked the highest annual increase since May 2024. Gasoline alone jumped 21.2% in a single month as the Strait of Hormuz disruption pushed fuel costs into the data.

However, core CPI rose just 0.2% month over month and 2.6% year over year.

That matched expectations and kept Treasury yields stable. Markets read the split as a war shock rather than broad-based inflation.

2. AI and Semiconductor Strength Lifts Nasdaq Into the Green

While the S&P 500 and Dow slipped, the Nasdaq Composite rose 0.38%. AI and chip names drove the rally. Moreover, TSMC reported record first-quarter revenue, showing resilience despite geopolitical risk.

Broadcom (AVGO) gained 4.54%. Nvidia (NVDA) added 2.29%. AMD (AMD) rose 3.43%. CoreWeave (CRWV) jumped after announcing multi-year cloud deals with Anthropic and Meta.

3. Narrow Breadth Reveals Rotation, Not Broad Conviction

Market breadth remained thin, with only about 42% of issues advancing. Gains stayed concentrated in large-cap tech and materials. Meanwhile, Healthcare, Financials, and Consumer Defensive stocks all fell, dragging the S&P and Dow lower while Nasdaq masked the weakness.

What Happened to Major US Indexes?

At press time, three of the four major indexes are in the red.

• Russell 2000 dropped 0.96 points (−0.37%) to 261.00
• S&P 500 slipped 1.78 points (−0.03%) to 6,822.88
• Dow Jones Industrial Average fell 229.48 points (−0.48%) to 47,956.30

The only outlier was Nasdaq Composite, which gained 85.65 points (+0.38%) to 22,908.10, hinting at rotation into tech.

US Stock Market Screener: FinViz

The S&P 500 now trades above all four Exponential Moving Averages (EMA), trend indicators that weight recent prices more heavily. That has not happened since February.

The 20-day EMA at 6,657 is closing in on the 50-day at 6,719. Meanwhile, the 50-day approaches the 100-day at 6,731. Multiple bullish crossovers are lining up.

S&P 500 Analysis: TradingView

Since touching a possible bottom of 6,318 on March 30, the index has staged a V-shaped recovery. It has reclaimed levels last seen in mid-March. Yet the 0.618 Fibonacci level at 6,806 remains the critical threshold. Holding above that level keeps 6,939 and 7,108 in play. However, a drop below 6,806 would expose the EMA cluster near 6,719 to 6,731. Below that, 6,713 acts as the next floor.

Which Sectors Are Holding Up?

Basic Materials led with a +0.72% gain. Gold and silver strength supported the sector as higher CPI readings increase demand for real assets as inflation hedges.

US Stock Market Sectors: FinViz

Utilities added +0.71% as yield-paying stocks attracted capital on an inflation-heavy day. Technology gained +0.62%, driven almost entirely by the AI semiconductor cluster following the TSMC beat.

Which Sectors Are Falling?

Healthcare led losses at −0.99%. Eli Lilly (LLY) fell 1.61% while AbbVie (ABBV) dropped 1.04%. One possible reason could be the fact that higher inflation raises input costs for drug manufacturers.

Consumer Defensive also declined −0.93%. Costco (COST) fell 1.61% and Walmart (WMT) dropped 1.41%. Despite their safe-haven reputation, rising fuel costs compress margins for these retailers.

Stocks Heatmap:FinViz

Financial fell −0.84%. JPMorgan (JPM) dropped 0.45% and Goldman Sachs (GS) slipped 0.15%. Hotter headline inflation reduces the odds of near-term rate cuts. That limits the net interest margin expansion banks need for earnings growth.

Major Stock News Investors Are Watching

1. Broadcom (AVGO) surged 4.54% after TSMC’s record first-quarter results reinforced that AI chip demand remains strong despite macro headwinds.
2. CoreWeave (CRWV) jumped over 12% after pricing an upsized $3.5 billion convertible note offering. The company also expanded its Meta AI deal to $21 billion and signed a multi-year agreement to power Anthropic’s Claude models.

Palantir (PLTR) fell 1.89% after investor Michael Burry publicly criticized the company’s AI competitive positioning.

What Are Investors Watching Next?

Weekend ceasefire talks between the US and Iran will determine whether oil prices extend their retreat or reverse. A breakdown would send energy costs back up, reinforcing today’s inflation shock.

Meanwhile, the FOMC meeting on April 29 is the next major rate decision.

Core CPI came in soft but headline inflation surged. Whether the Fed treats this as a temporary energy shock or a broader problem will set the tone through May.