
US Stocks Hover Near Flatline as Inflation Shows Signs of Cooling
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U.S. stock markets were largely unchanged Tuesday as investors digested a fresh inflation report and kicked off the latest corporate earnings season. The S&P 500 inched up about 0.1%, while the Dow Jones Industrial Average slipped roughly 35 points. The Nasdaq Composite stayed near the flatline, signaling caution among traders after record‑high closes the previous session. The small‑cap Russell 2000 also recently hit an all‑time high, reflecting broad equity strength.
Market sentiment was influenced by December’s consumer price index data, which showed that core inflation — excluding food and energy — rose 0.2% for the month and 2.6% year‑over‑year, slower than economist expectations. Overall inflation matched forecasts with a 0.3% monthly gain and a 2.7% annual rate. The softer core reading supported hopes that inflation pressures may be gradually easing, although they remain above the Federal Reserve’s 2% target.
Investors appeared to look past a Department of Justice criminal investigation into Federal Reserve Chair Jerome Powell, instead focusing on the resilient economy and expectations for continued earnings growth.
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