S&P 500, Dow, Nasdaq Up on Cooled CPI; Weekly Losses Loom as Fed Cut Bets Rise

Friday's session saw gains in major indices despite expectations of broader weekly declines. The S&P 500 (^GSPC) rose about 0.2%, as did the Dow Jones Industrial Average (^DJI) and the Nasdaq Composite (^IXIC), which added roughly 0.2% and 0.1%, respectively. January CPI from the Bureau of Labor Statistics showed a 0.2% monthly increase and 2.4% annual inflation, signaling cooler-than-expected price trends. This likely influences the Federal Reserve's path, with a majority of traders pricing in a June 25-point cut and a median of two cuts by year-end, though more are expected. Heavy selling pressed the indices earlier in the session as AI disruption concerns weighed on "old economy" sectors, sending tech shares lower and setting the S&P 500, Dow, and Nasdaq for significant weekly declines. Applied Materials (AMAT) surged up to 10% on a stronger-than-expected AI demand outlook, while Pinterest (PINS) fell as much as 20% on weak revenue and AI-related risks. Rivian (RIVN) jumped over 25% after exceeding earnings expectations, and Moderna (MRNA) rose 10% on resilient mRNA sales.