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 experienced a downward trend as investors reacted to a stronger-than-expected January inflation report, which has led to reduced expectations for interest rate cuts by the Federal Reserve in 2025. The Consumer Price Index (CPI) revealed a 0.4% increase in core inflation and a 3.3% year-on-year increase, both higher than previous figures. The unexpected rise in inflation has driven up the 10-year Treasury yield, indicating increased interest rate sensitivity in certain sectors. Despite the overall market pullback, stocks like CVS Health saw gains after positive earnings results.

Stock Forecasts

CVS

Positive

With the recent positive earnings report and market reaction, CVS Health demonstrates resilience amid the inflation concerns, suggesting a favorable outlook for investors looking for stable sectors in the healthcare space.

RDDT

Negative

Reddit's mixed earnings report, with user numbers lower than expectations, may lead to continued downward pressure on its stock. This suggests that investors should be cautious, as the overall sentiment could result in further declines in the near term.

XLRE

Negative

As inflation pressures persist, Goldman Sachs ETF or similar instruments in interest-sensitive sectors such as Real Estate might face downward pressure, suggesting a cautious approach for investors in these sectors until the inflation outlook stabilizes.

INTC

Positive

Intel's stock rally driven by bullish comments regarding chip manufacturing suggests that the market remains optimistic about its performance in the tech sector, especially related to AI and semiconductor growth.

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