In the wake of a January inflation report that aligned with expectations, an early morning surge in stocks tapered off on Thursday, coinciding with a decline in bond yields.
As Thursday afternoon unfolded, the Nasdaq Composite demonstrated resilience with a 0.5% uptick, while the S&P 500 edged up by 0.3%. Conversely, the Dow Jones Industrial Average experienced a slight dip of 0.1%.
According to Personal Consumption Expenditures (PCE) data, prices exhibited a 2.4% increase in the year leading up to January, marking a slight decrease from December’s 2.6%. Core inflation, which excludes volatile food and energy prices, moderated to 2.8% from 2.9%, aligning closely with market expectations. However, recent data trends have prompted speculation regarding the Federal Reserve’s progress in attaining its inflation target of 2%.
Contrary to the pre-report ascent, Treasury yields saw a significant drop following the release of the data. By Thursday afternoon, the 10-year yield had declined to approximately 4.24%.
Salesforce (CRM) experienced a resurgence in trading on Thursday after a post-earnings decline during extended trading the previous day. The software giant exceeded earnings projections but provided a lackluster outlook for the full year.
Wednesday’s market performance saw a downturn as Bitcoin’s price surged past $63,000, approaching its all-time high with a margin of just about $5,000.