Stock market today: Major indexes rise as Dow gains 0.50%, S&P 500 up by 0.49%, and Nasdaq advances 0.55% amid mixed economic signals and geopolitical uncertainty.

In a session that showcased a mix of optimism and caution, major U.S. stock indexes posted gains, driven by a series of economic data releases and investor sentiment regarding upcoming geopolitical challenges. The Dow Jones Industrial Average (^DJI) rose by 0.50%, continuing a trend of cautious optimism that has been evident in recent weeks. Similarly, the S&P 500 (^GSPC) advanced by 0.49%, and the Nasdaq Composite (^IXIC) recorded a slightly stronger increase of 0.55%.

Market participants have been keenly watching developments around the Federal Reserve's preferred inflation gauge, which has influenced market behavior significantly. The anticipation of this data, compounded by President Trump's persistent tariff threats, has added layers of complexity to an already volatile environment. These tariff announcements, particularly targeting Canada and Mexico, are part of a broader strategy, including a 10% tariff on Chinese imports, set to come into effect soon.

Strategists like Rob Haworth from US Bank Wealth Management underline a “wait and see” approach in response to the unfolding tariff situation, which he suggests may impact consumer spending and economic consumption. Despite these concerns, Haworth describes the economic landscape as a "glass half-full," pointing to strong employment figures and resilient consumer expenditure as pillars of support for the U.S. economy amidst the uncertainty.

The bond market's evolving dynamics, particularly the dropping 10-year yield, have triggered discussions on potential troubled waters ahead for equity markets. Barry Bannister from Stifel suggests that the market's reaction to these shifts, alongside Fed policies, will be critical in navigating the next phases. Barbell investment strategies and a defensive stance have been recommended for cautious investors.

Equity markets have also been contending with mixed earnings reports, most notably from tech giants like Nvidia, whose post-earnings shares have exerted downward pressure on the broader indexes, despite topping earnings estimates. The interplay between tech stock performances and defensive stocks like healthcare and utilities has been a focal point for investment strategies amid fluctuating market conditions.

As February draws to a close, it reflects a period of grappling with inflation data, international trade tensions, and response tactics ahead of key economic data releases. These forces have shaped the trading environment, prompting investors to balance between seizing growth opportunities and guarding against underlying risks.