Soft CPI Sparks Fed Cut Bets, Tech and Semiconductor Stocks Surge (Jan 13, 2026)

The softer-than-expected CPI report for January 2026—annual inflation at 2.4% vs. 2.5% forecast—sparked optimism for multiple Fed rate cuts this year, driving a broad equity rally and a 10-year Treasury yield decline. The Russell 2000 led the small-cap recovery as lower borrowing costs and inflation concerns stabilize valuations. Among impacted stocks: Gartner (INTC) rose over 5% in afternoon trading, reflecting cautious confidence despite ongoing volatility. The move follows Davos-related easing on Arctic and tariff policy, reducing inflationary tailwinds. Nvidia (NVDA) and AMD (AMD) led the Nasdaq Composite's 1.5% gain as growth stocks reversed a prior "Sell America" bias. The broader S&P 500 erased 2026 losses, with Treasuries stabilizing and supporting equity valuations. For context, Gartner closed at $157.17, down 33.7% YTD and 69.6% below its 52-week high of $517.17 from February 2025.