Stock market today: Dow leads stocks lower as hot inflation data pushes back rate cut hopes

Published On Feb 12, 2025, 4:59 PM

U.S. stocks faced downward pressure due to surprising inflation data for January exceeding expectations, particularly impacting interest rate cut predictions for the Federal Reserve in 2025. After an increase in the Consumer Price Index (CPI), with core prices rising 0.4% monthly and 3.3% annually, traders reduced expectations for interest rate cuts to only one later this year. The Dow slipped 0.5%, the S&P 500 fell nearly 0.3%, though the tech-heavy Nasdaq Composite barely edged higher. Notably, earnings reports showed mixed results for companies like Kraft Heinz, whose shares dropped, while CVS Health experienced a boost for beating profit expectations. Stocks sensitive to interest rates, particularly in real estate and small-cap sectors, dropped by about 0.7%. Meanwhile, several companies like Robinhood and Intel posted strong earnings and gains in stock prices.