From Nasdaq:

The Consumer Price Index (CPI) report for December showed a 0.3% increase in prices, with core inflation at a 3.9% annual gain, slightly higher than expected. Infosys released its Q4 earnings report, in line with EPS expectations on higher revenue, but with lower profits compared to last year. The market was relatively unfazed by the contradictory signals, leading to a near-zero net effect on stock trading.

While S&P 500 futures initially dropped after the CPI data release, they quickly rebounded slightly above the previous day’s close. Despite concerns about inflation, investors appeared to ignore the increase in core CPI, focusing instead on positive corporate profitability news, like Infosys’ earnings report. The overall market sentiment anticipates a better-than-expected earnings season, resulting in continued optimism and a call for investors to hold steady.

Although the market was seeking clarity following the CPI data release and the start of earnings season, it remains finely balanced and could go either way. While some defensive portfolio shifts may be justified, this is not the time to make significant investment decisions. The news has led to small shifts towards more defensive sectors like healthcare and consumer staples, highlighting the need for caution and steady investment strategies in the current market environment.



Read more: What Today’s Inflation Data and Early Earnings Indicate for the Stock Market