Major indices pared steep premarket declines following a CPI report that matched expectations, avoiding a worse-than-feared inflation print.
U.S. equities turned lower in early trading but recovered from post-CPI lows after inflation data aligned with forecasts. The Dow Jones Industrial Average fell 378 points, or 0.74%, while the S&P 500 and NASDAQ declined 0.35% and 0.45%, respectively.
The NASDAQ briefly tested positive territory following the release but reversed course, pushing above a key resistance level at 25,701.90 before retreating. A sustained break above this level would target the 200-hour moving average at 26,155.81, while failure to hold could see support tested near 25,000.
Traders viewed the CPI report as a relief after concerns over hotter-than-expected inflation earlier in the week. The session lows marked the steepest intraday declines since the prior trading day, but the recovery suggests cautious optimism among investors.