Cooler-than-forecast February inflation pushed stocks higher after two days of heavy losses. A kneejerk rally in bonds quickly reversed and yields rose across the curve amid concerns over an escalating trade war.

Equities advanced after a selloff that put the S&P 500 on the verge of a technical correction. The bounce was led by tech megacaps, which got heavily hit during the market meltdown. Yet anxiety around the impacts of President Donald Trump’s policies continued influence sentiment, with the US equity benchmark briefly falling as Canada unveiled new tariffs against $21 billion of US goods.