Dow, S&P, Nasdaq Weigh Weekly Losses Amid CPI Cooldown and Fed Cut Outlook

U.S. stocks extended lower Friday, tracking potential weekly declines as revised January CPI inflation cooled, tempering expectations for further interest rate hikes. The S&P 500 (^GSPC) fell 0.2%, the Dow Jones Industrial Average (^DJI) 0.1%, and the Nasdaq Composite (^IXIC) 0.4%. January CPI-U increased 0.2% month-over-month and 2.4% year-over-year. Traders favor a June 2026 rate cut, with a majority anticipating a 0.25-point reduction that month and expectations for two cuts by year-end, though some see additional reductions. Fears of AI disruption pressured "old economy" and logistics sectors, sending tech stocks, including all seven Magnificent Seven components, lower. Applied Materials (AMAT) gained as much as 10% on upbeat guidance reflecting strong AI demand, while Pinterest (PINS) plunged as much as 20% on softer-than-expected revenue and AI-related risks. Earnings continued to shape the session: Rivian (RIVN) surged over 25% on a fourth-quarter beat with the R2 EV model expected before summer, and Moderna (MRNA) rose 10% on stronger-than-expected quarterly revenue for its Covid vaccine.