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Intel ( INTC ) jumps on report TSMC pitched JV to US chipmakers

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PepsiCo drops on brokerage downgrade

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CPI shows inflation cooled more than expected in February

(Updates to market close)

By Stephen Culp

NEW YORK, March 12 (Reuters) - U.S. stocks advanced on

Wednesday as cooler-than-expected inflation data helped stanch a

sharp selloff, while the escalation of U.S. President Donald

Trump's chaotic, multi-front tariff war kept gains in check.

The S&P 500 and the Nasdaq closed in positive territory, the

latter enjoying a muscular boost from tech and tech-adjacent

momentum stocks.

The blue-chip Dow waffled between red and green for much of

the session but ended modestly lower on the day.

The Labor Department's Consumer Price Index showed consumer

prices cooling more than analysts expected, providing

reassurance that inflation is headed in the right direction and

keeping hopes alive that the U.S. Federal Reserve could cut its

key interest rate this year.

"We're seeing a bounce today on the lower-than-expected

inflation read and some dip buying," said Greg Bassuk, CEO at

AXS Investments in New York. "But Wall Street and Main Street

are still looking for direction."

"Investors' hopefulness about inflation cooling is being

mitigated by the ongoing trade-war strife," Bassuk added. "And

for that reason, we really expect the uncertainty and volatility

to continue here through much of March."

In his latest tariff salvo, Trump imposed 25% duties on

imported steel and aluminum, prompting Canada and Europe to

respond in kind, ramping up their retaliatory tariffs on U.S.

exports.

U.S. equities have come under pressure amid the rising

temperature of tit-for-tat tariff disputes between the United

States and its trading partners, rattling investors and giving

rise to fears that the resulting price jolts could tip the

United States, along with Canada and Mexico, into recession.

Goldman Sachs lowered its year-end target for the S&P 500,

while J.P. Morgan sees increasing odds of a U.S. recession.

On Monday, the S&P 500 dipped below its 200-day moving

average, considered a significant support level, for the first

time since November 2023.

On March 6, the tech-heavy Nasdaq dipped more than 10% below

its record closing high reached on December 16, confirming it

has been in a correction since then.

According to preliminary data, the S&P 500

gained 26.21 points, or 0.47%, to end at 5,598.28 points,

while the Nasdaq Composite gained 210.80 points, or

1.21%, to 17,646.89. The Dow Jones Industrial Average

fell 88.27 points, or 0.21%, to 41,345.21.

Intel ( INTC ) jumped after a report said TSMC had

pitched Nvidia ( NVDA ), Advanced Micro Devices ( AMD ) and

Broadcom ( AVGO ) about taking a stake in a joint venture to

operate the U.S. chip company's factories.

PepsiCo fell after brokerage Jefferies downgraded

its rating on the stock to "hold" from "buy."

Lawmakers on Capitol Hill continued to wrangle over a

stopgap spending bill in an effort to avoid a government

shutdown, adding further uncertainties to the mix.