Market reaction
Wall Street remained under pressure despite positive inflation numbers. The Dow Jones Industrial Average fell 267.77 points, or 0.54%, to 49,184.21. The S&P 500 declined 0.39% to 6,806.22. The Nasdaq Composite dropped 0.70% to 22,438.04. Data released by the Bureau of Labor Statistics showed that the Consumer Price Index rose 0.2% in January from the previous month. On a yearly basis, inflation stood at 2.4%. This was lower than market expectations of 2.5%. Usually, lower inflation supports stock prices. It raises hopes that borrowing costs may come down. However, markets did not react positively this time. Investors stayed cautious.
Federal Reserve
The new inflation data has increased hopes of rate cuts by the Federal Reserve. Many traders now expect a possible rate cut in June. Some also believe there could be two cuts by the end of 2026. Still, the Federal Reserve has not confirmed any plan. Officials have said they will depend on incoming data. Strong jobs numbers and stable consumer spending give them room to wait. However, this uncertainty is making investors nervous.
Tech stocks
Technology stocks were among the biggest losers. Shares of NVIDIA fell 1.64%. Apple dropped 5%. Amazon declined 2.20%. Intel lost 3.75%. Investors are worried that fast growth in AI could hurt some companies. The concern is not limited to technology firms. Stocks in real estate, transport, and logistics also faced pressure. Many traders fear that business models may change quickly and affect profits.
Metals and oils
As stocks fell, investors moved money into safer assets. Gold rose 1.60% to $5,027.70. Silver gained 3.77% to $78.53. Oil prices were steady. West Texas Intermediate crude traded near $62.74, and Brent crude was around $66.49. Despite the recent fall, major indexes are still near record levels. Analysts say the next move will depend on future inflation data, Federal Reserve signals, and company earnings.
