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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Nasdaq struggles, Dow Jones edges higher as inflation eases

The Consumer Price Index rose 2.4% year-over-year, slightly below the expected 2.5%

4:15pm: Mixed finish

US stocks finished Friday’s session mixed, with tech stocks dragging on the Nasdaq. The index was down 0.2% at 22,546 points while the S&P 500 was little changed at 6,836 points and the Dow Jones was up 0.1% at 49,500 points.

3:45pm: Proactive news headlines

2:30pm: Market movers

1:30pm: Gold and silver pare losses

Gold and silver priced have pared weekly losses, says Axel Rudolph, Chief Technical Analyst at investing and trading platform IG.

“Gold and silver prices ended the day and week on a positive note, regaining losses from earlier in the week with gold trading near the $5,000 mark as precious metal demand remains intact," Rudolph noted.

"The oil price ended the week in negative territory after a volatile weekly sideways trading session, awaiting the outcome of US/Iran nuclear talks."

11:50am: Pinterest shares plummet

Pinterest Inc (NYSE:PINS) shares fell more than 20% to about $15 on Friday after the company issued a softer-than-expected outlook as well as disappointing fourth quarter earnings.

The social media platform guided first quarter 2026 revenue to between $951 million and $971 million, representing year-over-year growth of about 11% to 14% but below the Wall Street consensus of $980 million. The company said it expects first-quarter adjusted EBITDA of $166 million to $186 million.

Wedbush noted that fourth quarter revenue of $1.3 billion was below expectations by roughly 1% and at the low end of management’s guidance, while adjusted EBITDA of $542 million came in about 2% below consensus, with year-over-year margin expansion of just 20 basis points.

At the midpoint, Pinterest’s first-quarter guidance implies revenue growth of 12.5% year over year, roughly 230 basis points below Street estimates, and adjusted EBITDA guidance of $166 million to $186 million is below initial expectations by $29 million.

10:55am: Fed given room to move

Experts say the latest inflation data gives the Federal Reserve room to cut rates, though a March move is considered unlikely.

Nigel Green, CEO of deVere Group, highlighted that real interest rates remain restrictive and urged the Fed to act to avoid overtightening, especially in sectors sensitive to borrowing costs like housing and business investment.

Analysts also noted behavioral factors are helping moderate inflation. Gina Bolvin of Bolvin Wealth Management said consumers are pushing back on prices and companies are absorbing costs, shifting focus back to fundamentals rather than macro policy.

Chris Zaccarelli of Northlight Asset Management added that markets are more focused on AI-driven disruption than immediate rate cuts, though gradual easing may occur later this year.

10:00am: CPI shows gradual price relief

Stocks opened largely flat on Friday as investors digested fresh inflation data that offered some signs of relief.

The Dow Jones inched up 24 points to 49,476, the S&P 500 rose 8 points to 6,841, while the Nasdaq dipped 8 points to 22,589. Small-cap names got a slight lift, with the Russell 2000 climbing 9 points to 2,625.

January’s CPI report showed consumer prices rising 2.4% year-over-year, slightly below the 2.5% expected, while core CPI, which strips out food and energy, held steady at 2.5%, its lowest since March 2021.

According to Wells Fargo, the cooler-than-expected reading was driven by softer used car and shelter costs, even as airfares spiked. The data suggests inflation pressures are easing gradually, keeping the door open for potential Fed rate cuts later in the year, though a March move now looks unlikely.

On the corporate front, Applied Materials surged over 10% on strong AI-driven demand, while Pinterest stumbled nearly 20% after a revenue miss. EV maker Rivian jumped more than 20% following a fourth-quarter beat and delivery update for its R2 model, and Moderna rose 10% after reporting stronger-than-expected vaccine revenue.

9:00am: January inflation eases

US inflation showed signs of easing in January, with the Consumer Price Index (CPI) rising 2.4% year-over-year, slightly below the expected 2.5%.

Core CPI, which excludes volatile food and energy prices, came in at 2.5%, in line with forecasts, and hit its lowest level since March 2021. The data suggests that underlying price pressures are gradually moderating, supporting the view that inflation is moving closer to the Federal Reserve’s 2% target.

While headline and core readings point to a slowdown, analysts will be watching services and shelter costs for signs of persistent inflation.

8am: All eyes on January CPI

US stocks were expected to open down on Friday as AI concerns continue to affect sentiment and ahead of a key inflation reading.

Futures for the Dow Jones and the S&P 500 were down around 0.3%. Nasdaq futures fell 0.2% after the tech-heavy index led the fall in the previous session.

Stocks closed lower Thursday as investors weighed fears of AI-driven disruption. The Nasdaq fell 2%, the S&P 500 slipped 1.6% and the Dow Jones dropped 1.3%.

January's CPI data, due for release at 8:30am ET, could influence the Federal Reserve’s next move. Strong January jobs figures have already dampened expectations for rate cuts. According to Tickmill Group's Patrick Munnelly, January inflation is expected to moderate, with headline CPI likely rising 0.3% month-over-month and slowing to 2.5%-2.7% year-over-year.

"Weak demand and sluggish retail sales highlight economic imbalances despite strong January payrolls, with growth largely driven by trade and AI-related investments," Munnelly said.

Also under the spotlight is Rivian Automotive Inc (NASDAQ:RIVN), with shares of the electric vehicle maker jumping 14.6% in after-hours after it beat Q4 expectations. Losses were smaller than expected, revenue nudged past forecasts, and the company posted its first annual gross profit of $144 million. Full-year revenue rose 8% to $5.37 billion, and net losses narrowed.

Looking ahead, Rivian plans a 47–59% boost in 2026 deliveries with the new R2 SUV, while still expecting pre-tax losses as it ramps up production and invests in growth.

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