US stocks closed mixed on Friday, posting weekly losses as investors digested a cooler-than-expected inflation reading. The Dow Jones rose 0.1%, while the Nasdaq fell 0.2%. The S&P 500 closed just above the flat line, with losses of more than 1% for the Dow and S&P 500, and more than 2% for the Nasdaq over the week.
Inflation in January cooled more than expected, with consumer prices increasing 0.2% from the previous month and 2.4% annually. The data is likely to shape expectations for Federal Reserve policy, with traders reviving bets on a June cut. Most bets remain on two cuts by the end of 2026.
A day of heavy selling saw AI disruption fears spread into sectors like real estate and transportation, hitting tech stocks hard. The sell-off set the stage for sharp weekly losses for the Dow, S&P 500, and Nasdaq. Investors are now scrutinizing earnings for the next AI scare, with some companies like Applied Materials surging and Pinterest tumbling.
Rivian, Moderna, and Applied Materials all saw stock surges after strong earnings reports, while Pinterest nosedived on revenue misses and AI disruption concerns. Rivian’s R2 model is on track for delivery before the summer, while Moderna topped revenue estimates thanks to resilient COVID shot sales.
The US saw a cooler-than-expected inflation reading in January, with consumer prices rising 0.2% from the previous month and 2.4% annually. Energy prices largely fell, with electricity and natural gas costs remaining elevated over the previous year. Traders are now pricing in a potential rate cut by June.
Bitcoin rebounded 5% on hopes that delayed crypto legislation will pass this year. The token jumped to $69,000 after a softer inflation print and Treasury Secretary Bessent’s call for Congress to pass a crypto regulation bill by Spring. Meanwhile, Nvidia shares slid amid AI spending growth despite a tech rebound.
Wall Street closed mixed on Friday, capping a volatile week as AI disruption fears spread. The Dow Jones rose 0.1%, while the Nasdaq fell 0.2% and the S&P 500 closed just above the flat line. Heavy selling triggered by AI disruption concerns led to sharp weekly losses for major indices.
Read more at Yahoo Finance: Dow, S&P 500, Nasdaq gains fizzle to cap week of sharp losses as AI fears grow