Soft CPI Sparks Fed Cut Bets, Driving Tech and Semiconductor Stocks Higher

The soft CPI reading for January (0.2% MoM, 2.4% YoY vs. prior 0.3% and 2.5%) below forecast has fueled speculation of multiple Fed rate cuts in 2026, sending Treasuries higher and technology shares surging. The Russell 2000 rose sharply as investors price in lower borrowing costs and economic stabilization. Among impacted stocks: Lumen (LUMO) rose 8% YTD; Amenta (AMNT), DXC (DXC), EchoStar (ECHO), and ScanSource (SCSC) also posted gains. The rally reflects broader strength in AI semiconductors受益 from major tech investments, including Amazon’s planned $200B expenditure. Note: The Dow Jones crossed 50,000 for the first time on the day, and the S&P 500 edged back into positive territory for 2026.