Stock Market Today, Feb. 13: Inflation Data Steadies Market and Slows AI Disruption Losses

The S&P 500 (^GSPC +0.05%) inched up 0.05% to 6,836.17 as cooler inflation data steadied sentiment. The Nasdaq Composite (^IXIC 0.22%) slipped 0.22% to 22,546.67, and the Dow Jones Industrial Average (^DJI +0.10%) added 0.10% to 49,500.93.

All three finished the week in the red, with the Nasdaq shedding 2.10% in the past five days. As we head into a long weekend with U.S. markets closed for Presidents’ Day on Monday, investors are trimming risks.

Market movers

Semiconductor manufacturer Applied Materials (AMAT +8.03%) surged following a positive Q1 earnings report and optimistic outlook. Electric vehicle manufacturer Rivian Automotive (RIVN +26.64%) soared 26.64% to close at $17.73 after earnings beat expectations.

Coinbase (COIN +16.56%) was also among today’s top gainers after heavy losses yesterday. The stock increased 16.46% to $164.32 in spite of disappointing Q4 revenue as Bitcoin (BTC +4.43%) posted gains. In the Dow, defensive healthcare name Medtronic (MDT 1.38%) slipped ahead of next week’s earnings.

What this means for investors

January’s Consumer Price Index (CPI) data, released today, came in lower than expected. Inflation slowed to 2.4% while core inflation, which doesn’t include food and energy, rose by 2.5%. The news went some way to reassure investors and showed that housing inflation was cooling.

AI replacement fears have dominated the markets this week. What started as a concern that automation could undermine software as a service (SaaS) stocks rapidly spread into other sectors. However, some analysts say the dramatic sell-off was an overreaction. At the very least, today’s CPI data slowed market losses.