Dow, S&P 500, Nasdaq slide as hot inflation data spooks markets

US stocks fell on Wednesday as investors digested a hotter-than-expected January inflation reading.

The Dow Jones Industrial Average (^DJI) fell more than 0.8%, while the benchmark S&P 500 (^GSPC) slipped 0.7%. The tech-heavy Nasdaq Composite (^IXIC) pulled back about 0.6%.

The Consumer Price Index (CPI) out Wednesday showed headline consumer inflation rose more than forecast in January. “Core” prices — which strip out the more volatile costs of food and gas — reversed the previous month’s easing, up 0.4% over last month and 3.3% over last year, with both rates higher than in December.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

The surprise inflation print pushed back investor bets on interest-rate cuts in 2025. As of Wednesday morning, traders were pricing just one interest-rate cut, after pricing in two for most of the year. The 10-year Treasury yield (^TNX) added 11 basis points to hit 4.64% following the inflation data.

Meanwhile, markets are on alert for more policy surprises from Trump, who is expected to announce reciprocal tariffs on many countries before the end of the week.

A fresh batch of earnings provided some clues to Corporate America’s resilience. Kraft Heinz (KHC) shares slid after the packaged food maker’s 2025 profit outlook fell short. But CVS Health (CVS) stock got a boost as investors welcomed a smaller drop in quarterly profit than expected.

On the after-hours docket, Reddit (RDDT) results come amid sky-high Wall Street expectations. Robinhood’s (HOOD) report is also in focus after the stock touched a three-year high.

LIVE 9 updates

  • Markets trim Fed rate cut bets

    Yahoo Finance’s Jennifer Schonberger reports:

    A hotter-than-expected inflation reading at the start of 2025 makes it much more likely that the Federal Reserve will keep rates on hold for the foreseeable future, reinforcing a cautionary stance from Fed Chair Jerome Powell and other central bank policymakers.

    After the latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) rose more than forecast in January, traders reduced their expectations for rate cuts in 2025 to just one — and not until much later in the year.

    “It really does push the timeline into the second half of the year if things go well,” Claudia Sahm, chief economist at New Century Advisors and former Fed economist, told Yahoo Finance.

    Read more here.

  • Josh Schafer

    Stocks slide after hot inflation reading

    US stocks fell on Wednesday as investors digested a hotter-than-expected January consumer inflation reading.

    The Dow Jones Industrial Average (^DJI), the S&P 500 (^GSPC), and the tech-heavy Nasdaq Composite (^IXIC) were all off about 1%.

  • Josh Schafer

    Inflation rises more than expected in January

    New data from the Bureau of Labor Statistics out Wednesday showed that a key inflation metric rose more than anticipated in January.

    On a “core” basis, which strips out the more volatile costs of food and gas, the January Consumer Price Index (CPI) climbed 0.4% over the prior month, an acceleration from December’s 0.2% monthly gain and above the 0.3% economists had expected. On an annual basis, prices rose 3.3%, above the 3.1% economists had projected.

    Headline consumer prices also rose more than expected. The CPI increased 3% over the prior year in January, an uptick from December’s 2.9% annual gain in prices. The yearly increase was above the 2.9% economists had expected.

    The index rose 0.4% over the previous month, ahead of the 0.3% increase seen in November and also on par with economists’ estimates.

    Read more here.

  • Jenny McCall

    JPMorgan: S&P 500 at risk of falling 2% if inflation runs hot

    The S&P 500’s (^GSPC)’ record run could face a setback, according to JPMorgan Market Intelligence. The team estimates the index may drop up to 2% if consumer prices (CPI) rise 0.4% or more in January from the previous month.

    With CPI data due at 8:30 a.m. New York time, markets are on edge. A slightly hotter print could challenge the bullish outlook on US equities. The consensus estimate is for a 0.3% rise in month-on-month CPI.

  • Europe stocks marooned in wait for CPI

    Stocks in Europe trod water on Wednesday, mirroring the muted tone in markets as investors prepared for a fresh reading on US consumer inflation.

    The pan-European Stoxx 600 (^STOXX) index inched up less than 0.1%, staying in range of fresh record highs thanks to solid earnings from the likes of Heineken (HEIA.AS, HEINY).

    In individual benchmarks, Germany’s DAX (^GDAXI) rose 0.3%, while the CAC (^FCHI) in Paris traded flat. London’s FTSE 100 index (^FTSE) hugged the flat line.

  • Gold hits brakes on record-setting rally

    Gold (GC=F) continued to pull back from a recent all-time high on Wednesday, as traders assessed Jerome Powell’s message that the Fed isn’t in a hurry to cut interest rates.

    Prices of gold bullion dropped below $2,890 an ounce, falling for a second day, after a record-setting run toward the key $3,000 level.

    Meanwhile, gold futures slid almost 1% to around $2,906 an ounce, with the shine coming off the non-interest-bearing asset as the 10-year Treasury yield (^TNX) rose.

    Prices for the metal have surged in recent days as investors sought out less risky assets in light of President Trump’s push for tariff hikes.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

    Economic data: Consumer Price Index (January); Real average hourly earnings (January); MBA Mortgage Applications (week ending Feb. 7)

    Earnings: Albermarle (ALB), Biogen (BIIB), CVS Health (CVS), Cisco (CSCO), Dutch Bros (BROS), Generac (GNRC), Kraft Heinz (KHC), MGM Resorts (MGM), Reddit (RDDT), Robinhood (HOOD), The TradeDesk (TTD)

    Here are some of the biggest stories you may have missed overnight and early this morning:

    CPI inflation on deck: What to watch with Fed cuts in focus

    Trump’s crypto company launches strategic ‘token reserve’

    Alibaba’s shares soar after investors buy iPhone AI hopes

    Analyst: Musk’s OpenAI bid a ‘distraction’ dragging Tesla stock

    Gold’s record rally hits pause after Powell’s speech

    Bets on higher US rates face inflation data test

    Why healthcare is the ‘best hedge’ if the AI rally cools in 2025

  • China stock surge has analysts bullish

    China’s AI-driven stock surge is gaining backing from Wall Street strategists, who believe the country’s emerging tech capabilities will help sustain the bull market.

    Analysts from Morgan Stanley (MS), JPMorgan Chase & Co (JPM)., and UBS Group AG (UBS) predict that stock gains fueled by DeepSeek’s artificial intelligence model will continue.

    Bloomberg reports:

  • Alibaba stock soars on iPhone AI hype

    Alibaba (BABA) stock saw a leap over 10% on the news that Apple (AAPL) is working with the Chinese e-commerce platform on breaking into artificial intelligence business in China.

    Bloomberg reports:

Source link

Visited 1 times, 1 visit(s) today

Related Article

Nvidia’s trillion-dollar run puts pressure on the bulls

BEIJING, CHINA – MAY 14: Nvidia CEO Jensen Huang (C) gestures as he prepares to depart following a welcome ceremony at the Great Hall of the People on May 14, 2026 in Beijing, China. President Trump is meeting with President Xi Jinping in Beijing to address the Iran conflict, trade imbalances, and the Taiwan situation

15 May 2026

Permutations in Europe: What’s still at stake in final weeks of season?

There’s still plenty to play for across Europe as we head into the final matches of the club season. Here are all the title races, Champions League fights, and relegation battles left to be decided in the top leagues this month. This story will be updated until the end of the campaign. 👉 Jump to:EPL

15 May 2026

Brewing a Better Half-Gallon Batch

Today I finally ran an experiment I’ve wanted to try for a long time. If you’re a professional barista—or you run a busy café—this may save you some time. Most coffee shops use 1–1.5 gallon batch brewers (Bunn, Curtis, Fetco, etc.). When I opened Short Sleeves Coffee, I intentionally avoided brewing full 1-gallon batches. I

15 May 2026

5 Frozen Breakfasts Chefs Say Keep You Full All Morning

Chef-approved frozen breakfasts with more protein and better ingredients. Eating a healthy breakfast every morning is a great way to start the day, but most people don’t have time to cook. Whether you’re rushing out the door in the morning for work, taking the kids to school or both, there’s usually not much time in

15 May 2026

CA scales back plan to ban student use of cell phones

By Carolyn Jones, CalMatters This story was originally published by CalMatters. Sign up for their newsletters. Until last month, California was poised to join nearly a dozen other states that ban cell phones in K-12 schools. But under pressure from school boards and administrators, lawmakers scaled back a bill that would have required such a

15 May 2026
BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

London, United Kingdom, May 15, 2026 (GLOBE NEWSWIRE) — BulkQuant has officially launched its AI trading bot platform designed for crypto, forex, and stock market traders seeking a simpler way to automate trading strategies across multiple financial markets. The platform combines AI-powered quantitative analysis, automated trade execution, portfolio monitoring, and adaptive risk management into a

15 May 2026
IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

The International Monetary Fund (IMF) has lauded the resilience of Hong Kong’s economy, noting a sustained recovery despite economic activity having yet to return to pre-Covid levels, while warning of downside risks stemming from escalating geopolitical tensions. It also urged Hong Kong to pursue medium-term financial reforms, including the introduction of a goods and services

15 May 2026

Smithsonian Presidents Exhibit Reopens With Low-Key Trump Impeachment Mention

For the past year, the Smithsonian Institution has found itself in the awkward position of telling the nation’s story while being supported in part by a government that wants to narrow how that story is told. In December, the White House threatened to revoke funding to the institution if it did not hand over a

15 May 2026

Marvel’s Daredevil Follow-up Is Already Dominating on Streaming

A follow-up to Daredevil: Born Again Season 2 on Disney+ has become a massive streaming success within days of its launch. The Punisher: One Last Kill has quickly climbed to the top of multiple charts, beating out other titles on the platform. The MCU television special follows the gun-toting vigilante, who finds himself targeted by

15 May 2026

Is Now a Bad Time to Invest?

The market has been on a roll lately, with the S&P 500 (SNPINDEX: ^GSPC) setting new highs throughout May. If you think you missed your opportunity when the market bottomed in late March, don’t fret. The market hitting new all-time highs is not particularly rare and should not change your investment strategy. And if you

15 May 2026
6 bids for Hong Kong land sale signal renewed confidence despite market caution

6 bids for Hong Kong land sale signal renewed confidence despite market caution

The Hong Kong government’s first land sale in the current financial year has drawn six bids, according to the Development Bureau, including those from the city’s largest developers, suggesting a more confident outlook for the residential property market. At the close of tender for Tung Chung Town Lot No 54 at Area 106A on Friday

15 May 2026

Each Premier League team reranked: Man City rise; Chelsea, Liverpool collapse

Ryan O’Hanlon Close Ryan O’Hanlon ESPN.com writer Ryan O’Hanlon is a staff writer for ESPN.com. He’s also the author of “Net Gains: Inside the Beautiful Game’s Analytics Revolution.”  and  Bill Connelly Close Bill Connelly ESPN Staff Writer Bill Connelly is a writer for ESPN. He covers college football, soccer and tennis. He has been at

15 May 2026
Trump departs China after two-day summit

Trump departs China after two-day summit

IE 11 is not supported. For an optimal experience visit our site on another browser. Trump Wraps China Summit With Xi Jinping: What Are the Results? 05:41 Xi gives Trump rare tour of secret garden at heart of Chinese government 01:04 Now Playing Trump departs China after two-day summit 01:01 UP NEXT Special Report: Trump

15 May 2026
Carol Chow was facing a bankruptcy petition by five people over unspecified debts at the time of her death. Photo: Dickson Lee

Embattled Hong Kong developer sued for HK$130 million, days after founder’s death

A Hong Kong property developer has been sued for HK$130 million (US$16.6 million) over allegedly breaching guarantor obligations in two bond subscription agreements, becoming the latest lawsuit to implicate the embattled company and following its founder’s sudden death earlier this week. Lofter Group, known for its urban renewal projects across the city’s core districts, and

15 May 2026

Trump’s China visit left chip export issue unresolved

This report is from this week’s The Tech Download newsletter. Like what you see? You can subscribe here. One look at the roster of U.S. execs that cozied up to U.S. President Donald Trump on the 20+ hours flight from Alaska to China on Wednesday and you get a sense of the American delegation’s key focus

15 May 2026
Why the Cerebras IPO matters for the AI race with China

Why the Cerebras IPO matters for the AI race with China

Cerebras, an AI chipmaker, saw its shares nearly double on Nasdaq, closing up 70% with a $95B market cap. Cerebras’s powerful chips are key in the US-China AI tech race. Chris Buskirk, co-founder and chief investment officer of 1789 Capital, a key Cerebras investor, says the company’s IPO is geopolitically significant. On Thursday, shares of

15 May 2026

Fitbit Air vs Whoop Strap Comparison: Price, Features and AI

The Google Fitbit Air is very much the talk of the fitness tracking town right now, not only because it’s the first new Fitbit device that we’ve had in years, but it’s also one of the first big brands to go head-to-head with the established Whoop Strap (if you don’t count the Polar Loop and

15 May 2026
0
Would love your thoughts, please comment.x
()
x