US stocks edge up, yields fall as US CPI data cooler than expected
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2026. REUTERS/Brendan McDermid
NEW YORK, Feb 13 : Wall Street indexes ended mostly with a slight gain while Treasury yields fell on Friday as investors digested cooler-than-expected U.S. inflation data for January that some saw as underpinning hopes for interest rate cuts.
The U.S. dollar was nearly flat against other currencies.
The report showed the U.S. Consumer Price Index rose 2.4 per cent on a yearly basis, slightly below the estimated 2.5 per cent increase, according to economists polled by Reuters. The news boosted bets that the Federal Reserve will deliver at least two rate cuts this year.
The data followed a surprisingly strong U.S. employment report on Wednesday. The Fed last month left its benchmark overnight interest rate in the 3.50 per cent-3.75 per cent range.
Tim Holland, chief investment officer at Orion, said the U.S. CPI is now closer to the Fed's long-term inflation target of 2 per cent than it is to 3 per cent.
"We wonder if market participants might recalibrate their expectations around 2026 interest rate cuts, while we hope falling gasoline and car prices put a bit of a spring in the U.S. consumer's step. Either way, it is a bit of good news as we head into the long holiday weekend," Holland said.
On Wall Street, the Dow and S&P 500 ended a choppy session slightly higher, while the Nasdaq eased and the technology sector was down 0.5 per cent. The potential for artificial intelligence‑driven disruption in the technology space has remained a concern.
The Dow Jones Industrial Average rose 48.95 points, or 0.10 per cent, to 49,500.93, the S&P 500 rose 3.41 points, or 0.05 per cent, to 6,836.17 and the Nasdaq Composite fell 50.48 points, or 0.22 per cent, to 22,546.67. All three of the major indexes had slight losses for the week.
MSCI's gauge of stocks across the globe fell 2.47 points, or 0.24 per cent, to 1,042.75.
European shares ended down slightly amid the AI concerns. The pan-European STOXX 600 index closed 0.13 per cent lower at 617.7 points. However, it capped a turbulent week with a marginal gain of 0.09 per cent.
While the dollar was little changed, bitcoin was sharply higher in late afternoon, gaining 4.94 per cent to $69,049.69.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.03 per cent to 96.90, with the euro down 0.01 per cent at $1.1869.Against the Japanese yen, the dollar strengthened 0.01 per cent to 152.75.
The yield on benchmark U.S. 10-year notes fell 5.6 basis points to 4.048 per cent, from 4.104 per cent late on Thursday.
Aluminum prices sank to a one-week low before cutting their losses. Weighing on the prices was a Financial Times report that U.S. President Donald Trump plans to scale back some tariffs on steel and aluminum goods, citing people familiar with the matter.
Oil prices settled up slightly, while gold rose as the soft inflation data supported hopes for the Fed to cut rates.
Brent crude futures rose 23 cents to settle at $67.75 a barrel, while U.S. West Texas Intermediate crude gained 5c to settle at $62.89.
