(Sharecast News) - US stocks finished Friday's session with small gains after the previous day's sell-off, as a softer-than-expected inflation print repaired sentiment slightly following fears about an AI bubble earlier in the week.
The Dow and S&P 500 both rose 0.1% after dropping 1.3% and 1.6% on Thursday, respectively. However, the tech-heavy Nasdaq slipped 0.2% to register its fourth day in the red.
"The AI scare trade has shocked investors in 2026 and has brought a significant amount of market dislocation. Some of it is helpful, it has helped some overvalued growth stocks to move to more reasonable valuations, however, the market may have overcorrected, and a bit of equilibrium may need to return to the market," said Kathleen Brooks, research director at XTB.
Friday's primary focus was January's consumer price index, which revealed US consumer prices had undershot forecasts last month, with headline CPI rising 0.2% on the month, while the annual rate eased to 2.4%, down from 2.7% in December. Economists expected to see the inflation gauge show a 2.5% year-on-year advance and a 0.3% month-on-month uptick.
Core CPI, which strips out volatile food and energy costs, increased 0.3% on the month and rose 2.5% year-on-year. Food prices were 2.9% higher versus a year ago, while the energy index slipped 0.1% yearonyear.
Analysts at TD Securities said the data, while welcome, didn't change their projections for the Federal Reserve to resume cutting interest rates in June.
"Modest turn-of-the-year core inflation - better seen through the non-seasonally adjusted lense - bodes well for our long-held view of disinflation for 2026. We think the FOMC is now well-placed to patiently evaluate the evolution of both labor market and inflation conditions before making any policy decisions in the near term," they said in an emailed note.
Elsewhere, news that the US and Taiwan had finalised a reciprocal trade agreement also drew an amount of investor attention on Friday, with the deal setting a 15% US tariff on imports from Taiwan while committing Taipei to eliminate or reduce tariffs on nearly all American goods and significantly increase purchases of US products over the next four years.
Market movers
Pinterest's share price was down 17% after the image pinboard platform disappointed investors with its fourth-quarter results and outlook for the start of 2026. The company also guided to first-quarter revenues of $951m-971m, with the mid-point some $20m under the current market forecast of $981m.
Moderna revenues fell by almost a third over the final quarter of 2025, though the American pharma giant reported a narrower loss than expected, causing shares to rise 5%. Guidance for 2026 also impressed the market, with Moderna forecasting "up to 10%" growth in revenues from 2025.
US-listed shares of Stellantis fell on reports the car maker is quietly resurrecting diesel versions of at least seven car and passenger van models across Europe as it retreats from electric vehicles, according to a review of dealer websites and company statements to Reuters.
Meanwhile, semiconductor business Applied Materials was up 8% on the back of strong quarterly earnings and an encouraging outlook, while Airbnb traded 5% higher on upbeat guidance.
Dow Jones - Risers
Nike Inc. (NKE) $62.94 3.32%
Unitedhealth Group Inc. (UNH) $291.07 3.10%
Walt Disney Co. (DIS) $105.08 3.00%
Cisco Systems Inc. (CSCO) $76.85 2.47%
Salesforce.Com Inc. (CRM) $188.79 2.31%
Caterpillar Inc. (CAT) $772.90 2.10%
Merck & Co. Inc. (MRK) $121.15 1.82%
Boeing Co. (BA) $241.74 1.51%
International Business Machines Corporation (CDI) (IBM) $261.67 1.10%
Amgen Inc. (AMGN) $369.24 0.83%
Dow Jones - Fallers
Visa Inc. (V) $313.76 -3.12%
3M Co. (MMM) $171.12 -1.60%
American Express Co. (AXP) $337.36 -1.57%
McDonald's Corp. (MCD) $327.29 -1.36%
Travelers Company Inc. (TRV) $294.08 -1.08%
Verizon Communications Inc. (VZ) $49.01 -0.91%
Procter & Gamble Co. (PG) $160.39 -0.71%
Dow Chemical Co. (DOW) $32.54 -0.49%
Johnson & Johnson (JNJ) $243.70 -0.45%
Coca-Cola Co. (KO) $78.61 -0.41%
S&P 500 - Risers
H&R Block Inc. (HRB) $30.86 9.56%
Akamai Technologies Inc. (AKAM) $111.76 6.83%
NRG Energy Inc. (NRG) $170.57 6.52%
Newmont Corporation (NEM) $125.18 6.50%
Baxter International Inc. (BAX) $19.76 5.77%
Bath & Body Works, Inc. (BBWI) $23.81 5.29%
Sl Green Realty Corp. (SLG) $40.78 5.16%
Wynn Resorts Ltd. (WYNN) $113.39 5.14%
Kohls Corp. (KSS) $19.63 4.92%
CH Robinson Worldwide Inc (CHRW) $176.01 4.91%
S&P 500 - Fallers
Constellation Brands Inc. Class A (STZ) $149.31 -8.04%
Norwegian Cruise Line Holdings Ltd (NCLH) $21.74 -7.57%
TripAdvisor Inc. (TRIP) $9.61 -6.88%
Expedia Group Inc. (EXPE) $212.67 -6.41%
Borg Warner Inc. (BWA) $63.43 -5.63%
Air Products & Chemicals Inc. (APD) $280.20 -4.03%
Royal Caribbean Cr (RCL) $321.22 -3.96%
Visa Inc. (V) $313.76 -3.12%
Starbucks Corp. (SBUX) $93.79 -3.07%
Nucor Corp. (NUE) $182.39 -2.96%
Nasdaq 100 - Risers
Qvc Group Inc Series A (QVCGA) $4.11 25.69%
Wynn Resorts Ltd. (WYNN) $113.39 5.14%
Check Point Software Technologies Ltd. (CHKP) $171.48 4.26%
Cadence Design Systems Inc. (CDNS) $299.46 3.86%
eBay Inc. (EBAY) $82.38 3.74%
Autodesk Inc. (ADSK) $231.22 3.46%
Synopsys Inc. (SNPS) $437.09 3.25%
Paypal Holdings Inc (PYPL) $40.29 3.10%
Regeneron Pharmaceuticals Inc. (REGN) $803.17 2.49%
Cisco Systems Inc. (CSCO) $76.85 2.47%
Nasdaq 100 - Fallers
Expedia Group Inc. (EXPE) $212.67 -6.41%
Liberty Global plc Series C (LBTYK) $10.76 -3.72%
Liberty Global plc Series A (LBTYA) $10.89 -3.11%
Starbucks Corp. (SBUX) $93.79 -3.07%
Nvidia Corp. (NVDA) $182.81 -2.21%
Sirius XM Holdings Inc (SIRI) $21.29 -1.89%
Dollar Tree Inc (DLTR) $126.06 -1.85%
Broadcom Inc. (AVGO) $325.17 -1.81%
Meta Platforms Inc. (META) $639.77 -1.55%
JD.com, Inc. (JD) $27.14 -1.38%
43.91 (0.42%)
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