U.S. stocks ended mixed on Wednesday after the release of a reassuring consumer price report, which helped the market recover from a sharp downturn driven by concerns over the economy's health.

The Dow Jones Industrial Average fell 82.55 points, or 0.20 percent, to 41,350.93. The S&P 500 added 27.23 points, or 0.49 percent, to 5,599.3. The Nasdaq Composite Index increased 212.36 points, or 1.22 percent, to 17,648.45.

Six of the 11 primary S&P 500 sectors ended in green, with technology and communication services leading the gainers by going up 1.56 percent and 1.43 percent, respectively. Meanwhile, consumer staples and health led the laggards by dropping 2.02 percent and 1.02 percent, respectively.

U.S. stocks had fallen steeply in the first two days of the week, following last week's worst weekly performance of the year for major indexes, as investor anxiety grew over the Trump administration's policies particularly tariffs as well as the risk of an economic downturn.

The major indexes have now erased their post-election gains, as the optimism that propelled stocks to record highs after Donald Trump's presidential victory in early November has faded in recent weeks. Ahead of Wednesday's session, the S&P 500 had declined 9.3 percent from its record close just three weeks ago, while the Nasdaq Composite had plunged nearly 14 percent from its all-time high in December.

The latest U.S. consumer price index (CPI) report indicated that annual inflation eased to 2.8 percent in February from 3 percent in January, slightly below economists' expectations. Core CPI, which excludes volatile food and energy prices, rose 0.2 percent on the month and 3.1 percent for the past 12 months, both below expectations.

While a slowdown in price increases raises the hope that the Federal Reserve could be in a position to cut interest rates in the coming months, experts are still worrying about the policies. "Trade wars are expected to raise prices in future inflation reports," said Chris Low, chief economist at FHN Financial. "The Fed is sidelined now by price uncertainty."

The U.S. yield on the 10-year Treasury note, which has been trending lower amid rising economic concerns, was recently at 4.316 percent, up from 4.29 percent at Tuesday's close. The yield, which influences borrowing costs for mortgages and other loans, had dipped below 4.20 percent on Monday.

Technology stocks, which have been among the hardest hit in the recent sell-off, led the gains on Wednesday. Tesla, which has lost about half its market value since reaching a record high in mid-December, surged 7.59 percent, while chipmakers Nvidia and Broadcom climbed 6.43 percent and 2.18 percent, respectively. Microsoft, Amazon, Alphabet, and Meta Platforms also advanced. Apple, however, continued its recent slump, falling 1.75 percent and weighing on the Dow.

Intel gained 4.55 percent after a report suggested that Taiwan Semiconductor Manufacturing Company (TSMC) had approached Nvidia, Broadcom, and Advanced Micro Devices (AMD) about forming a joint venture to take over Intel's struggling foundry division. TSMC and AMD also climbed roughly 4 percent.

Server maker Super Micro Computer, Inc. (SMCI) added near 4 percent after an 11 percent surge on Tuesday, while analytics software provider Palantir and advertising platform AppLovin, two AI-focused stocks that have struggled in the recent market slump, advanced 7.17 percent and 5.75 percent, respectively.

Airline stocks remained under pressure Wednesday, as several carriers have recently downgraded their outlooks amid weakening travel demand in an uncertain economic environment. Delta Air Lines and American Airlines declined about 2.96 percent and 4.62 percent, respectively. 

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