The major indices are lower but well off premarket low levels

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The major U.S. stock indices (Dow Jones, S&P 500, NASDAQ) are trading lower during the session after the CPI data showed inflation in line with expectations. However, they have rebounded from post-CPI lows, indicating mixed market sentiment. The NASDAQ briefly turned positive post-CPI but reversed lower. Technically, the NASDAQ tested resistance at 25,701.90 before retreating, while the S&P 500 remains below its 200-hour moving average at 7,424.08, maintaining a bearish bias. Key support levels for both indices are under scrutiny, with potential downside targets if sellers dominate. Traders are monitoring technical levels and Fibonacci retracements to gauge future price action. For Gulf investors, the U.S. equity market's performance could influence regional portfolios, especially given the interconnectedness of global markets. The focus remains on whether indices can break key moving averages to shift momentum.