WASHINGTON (dpa-AFX) - Stocks have seen considerable volatility over the course of the trading day on Friday, with the major averages swinging wildly back and forth across the unchanged line following the steep drop seen in the previous session.
Currently, the major averages are narrowly mixed. While the Nasdaq is down 6.82 points or less than a tenth of a percent at 22,590.33, the S&P 500 is up 16.07 points or 0.2 percent at 6,848.83 and the Dow is up 118.24 points or 0.2 percent at 49,570.22.
The choppy trading on Wall Street comes even after the release of the Labor Department's highly anticipated report on consumer price inflation in the month of January.
The report showed consumer prices rose by slightly less than expected on a monthly basis, while the annual rate of growth slowed by more than anticipated.
The Labor Department said its consumer price index rose by 0.2 percent in January after climbing by 0.3 percent in December. Economists had expected prices to rise by another 0.3 percent.
The annual rate of growth by consumer prices slowed to 2.4 percent in January from 2.7 percent in December, coming in below estimates of 2.5 percent.
Meanwhile, the Labor Department said core consumer prices, which exclude food and energy prices, increased by 0.3 percent in January after rising by 0.2 percent in December, matching expectations.
The annual rate of growth by core consumer prices dipped to 2.5 percent in January from 2.6 percent in December, which was also in line with estimates.
The tamer-than-expected headline inflation data has led to some renewed optimism about the outlook for interest rates and a continued slump by treasury yields.
'This print strengthens the case that the Federal Reserve can maintain a gradual easing bias without fearing renewed inflation pressure,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, 'Importantly, while the labor market remains resilient, today's CPI reduces the risk that strong employment data forces the Fed into a hawkish rethink.'
However, traders continue to express concerns about potential disruptions caused by the recent artificial intelligence buildout, keeping buying interest subdued.
'Some are concerned about excessive levels of spending and others fear AI will disrupt multiple industries,' said Russ Mould, investment director at AJ Bell. 'It all adds up to a cocktail of worries and that's bad for market sentiment more broadly.'
Sector News
Gold stocks are seeing substantial strength amid a sharp increase by the price of the precious metal, with the NSYE Arca Gold Bugs Index spiking by 4.9 percent.
Considerable strength is also visible among computer hardware stocks, as reflected by the 3.0 percent surge by the NYSE Arca Computer Hardware Index.
Networking, utilities and biotechnology stocks are also seeing significant strength, moving higher along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Friday. Japan's Nikkei 225 index tumbled by 1.2 percent, while Hong Kong's Hang Seng Index dove by 1.7 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is down by 0.4 percent, the German DAX Index is up by 0.2 percent and the U.K.'s FTSE 100 Index is up by 0.4 percent.
In the bond market, treasuries are extending the strong upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.2 basis points at 4.062 percent.
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