The S&P 500 finished just above the flatline on Friday as a closely watched consumer inflation report that came in slightly cooler than expected failed to trigger a meaningful rally.
The broad market index edged up 0.05% to close at 6,836.17. Meanwhile, the Nasdaq Composite slipped 0.22% to 22,546.67, and the Dow Jones Industrial Average added 48.95 points, or 0.10%, to settle at 49,500.93.
Data from the Bureau of Labor Statistics showed the consumer price index (CPI) rose 0.2% in January, bringing the annual rate to 2.4%. Economists surveyed by Dow Jones had expected a 0.3% monthly increase and a 2.5% year-over-year gain.
Excluding the more volatile food and energy components, core CPI matched forecasts, rising 0.3% on the month and 2.5% from a year earlier.
Concerns about AI-driven disruption weighed on markets throughout the week, spreading beyond software to sectors such as real estate, trucking, and financial services. Financial firms Charles Schwab and Morgan Stanley declined 10.8% and 4.9% for the week, respectively, while software company Workday fell 11%. Commercial real estate firm CBRE dropped 16% week to date.
The anxiety also reached media stocks. Walt Disney shares gained about 3% for the week, while Netflix fell 6%.
For the week overall, major indexes moved lower. The S&P 500 lost 1.4%, marking its second straight weekly decline. The Dow fell 1.2%, and the Nasdaq dropped 2.1%.
Frequently Asked Questions
Why did the S&P 500 stay flat despite softer inflation?
Because the CPI data, while slightly cooler, was largely in line with expectations and not weak enough to trigger strong buying.
What did the latest CPI report show?
Headline CPI rose 0.2% month over month and 2.4% year over year, while core CPI came in at 0.3% monthly and 2.5% annually.
Which sectors were most impacted this week?
Financials, software, and commercial real estate were among the hardest hit, largely due to AI disruption concerns.
How did the major indexes perform for the week?
The S&P 500 fell 1.4%, the Dow declined 1.2%, and the Nasdaq dropped 2.1%, marking a broadly negative week.
What are investors watching next?
Markets will focus on upcoming inflation data, Federal Reserve signals, and whether AI-driven volatility continues to spread across sectors.
