Stock market today: Dow leads stocks lower as hot inflation data pushes back rate cut hopes
Published On Feb 12, 2025, 4:23 PM
US stocks saw a decline as investors reacted to stronger-than-expected inflation data for January, which has led to decreased expectations for interest rate cuts by the Federal Reserve in 2025. The Consumer Price Index (CPI) rose by 0.4% over the previous month, and on an annual basis, inflation increased by 3.3%. This data prompted traders to re-evaluate their strategies as the likelihood of multiple rate cuts diminished. Notable earnings reports included CVS Health, which exceeded expectations and saw its stockrise, whereas Kraft Heinz fell short in its profit outlook. The 10-year Treasury yield increased, reflecting the market's adjustment to the new inflation expectations.
Stock Forecasts
SPY
Negative
Investor sentiment is increasingly cautious due to higher-than-expected inflation, which erodes confidence in aggressive rate cuts, impacting stock performance broadly, especially in rate-sensitive sectors.
CVS
Positive
CVS Health reported better-than-expected results, showcasing resilience in its business model despite industry headwinds. Its strong earnings may appeal to investors looking for stability.
KHC
Negative
Kraft Heinz disappointed with its profit outlook, which could negatively impact investor sentiment and stock performance given the competitive nature of the packaged food industry.
INTC
Positive
Intel's recent performance on bullish comments regarding chip manufacturing showcases investor interest in AI-related stocks. Continued focus on innovation and growth in this sector could lead to a positive performance.
RDDT
Negative
Reddit's mixed earnings report led to a decline in its stock price. With user engagement data falling short, there may be concerns about its growth trajectory.
XLRE
Negative
The rise in the 10-year Treasury yield following inflation news can have a cascading effect on real estate and small-cap stocks, leading to potential declines in those sectors.
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