US stocks advanced on lower inflation data

US stocks advanced moderately in early trading on Thursday on the lower-than-expected inflation data, which supported the stock market after a sharp selloff. However, escalation of trade tensions, triggered by US President Donald Trump's tariffs, kept gains in check. As reported by Reuters, the S&P 500 closed in positive territory.

According to the US Labor Department's report, the Consumer Price Index increased 2.8% after climbing 3.0% in January. This suggests that inflation is moving towards the target level, and the US Federal Reserve could cut its key interest rate this year, the agency's experts believe.

Nevertheless, Greg Bassuk, CEO of AXS Investments, expects the uncertainty and volatility to continue in the US stock market through much of March. US stocks remain under pressure given the escalating tensions between the United States and its trading partners. As a result, Goldman Sachs lowered its year-end target for the S&P 500 index. Meanwhile, JPMorgan experts see increasing odds of a US recession.