S&P 500 Ends Flat After Mild Inflation Data, Logs Weekly Loss

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%.