US OPEN: Indices turn green after lower CPI print

• US Markets Show Resilience: US100 +1.36%, US500 +0.89%, US30 +0.34%, US2000 +0.74%. VIX drops -3.91% to 23.33, signaling reduced market anxiety.

• European Markets Mixed: VSTOXX falls -5.36% to 21.18, SPA35 -1.21%, while DE40 +1.32%, SUI20 +1.48%, W20 +1.55% show strong gains.

• Intel Shares Surge on Joint Venture Talks: Up 8.1% on reports of TSMC-led consortium potentially taking over chip-manufacturing operations. TSMC ADRs rise 1.1%.

• iRobot Plunges 40% on Going Concern Warning: Former Amazon takeover target misses Q4 estimates, initiates strategic review including potential sale.

• Walmart Summoned by Chinese Authorities: Meeting follows reports retailer asked suppliers to absorb US tariff costs. Chinese officials warn of potential consequences for 28% China growth.

Major US indices are showing predominantly negative performance. The BRAComp is down -0.18% to 124924, while the US100 has risen +1.36% to 19731.46. The US500 is up +0.89% to 5641.2, and the US30 has gained +0.34% to 41694. The MEXComp remains unchanged at 0.00%, while the US2000 has gained slightly, up +0.74% to 2047.7. Notably, the VIX fear gauge has dropped -3.91% to 23.33, indicating decreasing market anxiety.

European markets are experiencing mixed performance. The VSTOXX volatility index has fallen -5.36% to 21.18, while Spain's SPA35 is down -1.21% to 12825. The UK100 is showing modest gains of +0.24% to 8534.0, and France's FRA40 is up +0.65% to 8039.9. Other European markets showing positive performance include the Netherlands' NED25 (+0.70% to 899.12), EU50 (+0.84% to 5378.6), Italy's ITA40 (+0.90% to 38297), Austria's AUT20 (+0.96% to 4207), Germany's DE40 (+1.32% to 22748.9), Switzerland's SUI20 (+1.48% to 12908), and Poland's W20 (+1.55% to 2628.6).

S&P 500 Sectors Show Mixed Performance. Source: Bloomberg Financial LP

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq-100 index, represented by the US100 contract, is trading below the 61.8% Fibonacci retracement level. The RSI is consolidating near oversold levels, with a potential bullish divergence if a higher low above 35.6 occurs. Meanwhile, the MACD is starting to narrow. Source: xStation

Market News

• Intel Shares Surge on Potential Chip Manufacturing Joint Venture: Intel (INTC) shares jumped 6% in early trading Wednesday following reports that Taiwan Semiconductor Manufacturing (TSM) has pitched a consortium approach to take over Intel's chip-manufacturing operations. According to Reuters, TSMC has proposed a joint venture with Nvidia, AMD, and Broadcom, where TSMC would maintain no more than a 50% stake. The potential deal would require Trump administration approval and comes despite Intel's recent $13.4 billion Foundry business losses and delays to its Ohio chip fabrication facilities. TSMC's American depositary receipts rose 1.1% following the news.

• Groupon Forecasts Strong 2025 Revenue, Shares Surge: Groupon (GRPN) shares climbed as much as 30% after the online coupon company provided a 2025 revenue forecast of $493-500 million, beating analyst estimates of $491.3 million. The company expects adjusted EBITDA between $70-75 million and free cash flow of at least $41 million for 2025. For Q1, Groupon projects adjusted EBITDA of $7-10 million, below the $14.7 million analyst consensus. The company reported Q4 revenue of $130.4 million, down 5.3% year-over-year but ahead of $127.7 million estimates, with North American gross billings up 1.8%.

• iRobot Plunges 40% on Going Concern Warning: Shares of iRobot (IRBT) plummeted as much as 40% after the robotic vacuum maker issued a going concern warning alongside disappointing quarterly results. The former Amazon takeover target reported Q4 revenue of $172 million, missing analyst estimates of $181 million, with a wider-than-expected adjusted loss of $2.06 per share. iRobot's board has initiated a formal strategic review to evaluate alternatives including refinancing debt or exploring a potential sale. The company has canceled its earnings call and is not providing a 2025 outlook as it engages in discussions with its primary lender.

• Reddit "Extremely Attractive" After 50% Stock Decline: Loop Capital maintained its Buy rating and $210 price target on Reddit (RDDT), calling the stock "extremely attractive" following what it described as an "excessive" 50% decline in one month. The firm projects 36% revenue growth and 87% EBITDA growth this year, driven by better ad tools, increased ad load on comment pages, and improved auction dynamics. Meanwhile, Raymond James analyst Josh Beck cut his target to $200 from $250 while maintaining a Strong Buy rating, still implying a 63% upside from the current price.

• China Summons Walmart Over Tariff-Related Supplier Demands: Chinese authorities summoned Walmart (WMT) executives on Tuesday regarding reports that the retailer asked suppliers to bear rising costs from increased US tariffs. Several Chinese agencies, including the Ministry of Commerce, met with Walmart to discuss its negotiations over price cuts with Chinese suppliers. State media warned that such demands risk fracturing global supply chains and suggested Walmart could face further actions if it continues these practices. The stakes are high for Walmart, which has defied China's consumption slump with robust 28% net sales growth in its most recent quarter, particularly through its Sam's Club expansion.

• February Inflation Data Shows Cooling Price Pressures: The latest Consumer Price Index (CPI) data revealed consumer prices rose less than forecast in February, increasing 2.8% year-over-year, below January's 3% gain and economists' expectations of 2.9%. On a monthly basis, the index rose 0.2%, decelerating from January's 0.5% increase. Core CPI, which excludes volatile food and energy prices, climbed 3.1% annually, down from 3.3% in the prior period. Both metrics beat Wall Street projections, potentially easing investor concerns about persistent inflation as the Federal Reserve weighs its interest rate policy.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP