2026.2.13 US Market Close | Tech stocks drop on hot CPI report as small caps surge cover art

2026.2.13 US Market Close | Tech stocks drop on hot CPI report as small caps surge

2026.2.13 US Market Close | Tech stocks drop on hot CPI report as small caps surge

Listen for free

View show details

About this listen

 On February 13, the US stock market closed mixed as a hotter-than-expected January Consumer Price Index (CPI) report led to a divergence among the major indices. Fading hopes for a near-term rate cut put pressure on tech stocks, while a resilient economy fueled a rally in small-cap stocks, creating a clear split in the market. Major Index Performance - Dow Jones: +0.1% - Edged higher despite weakness in the tech sector. - S&P 500: +0.05% - Closed with a slight gain. - Nasdaq: -0.22% - Declined as rate cut expectations receded following a 0.3% monthly core CPI reading that topped forecasts. - Russell 2000: +1.18% - Surged as capital rotated from big tech into small-cap stocks. Key Market Movers - Hot CPI Delays Rate Cut Hopes: The January Core CPI rose 0.3% month-over-month, exceeding market forecasts of 0.2%. This fueled concerns that the Fed might postpone rate cuts until June or later. - Tech vs. Small-Cap Divergence: While the Nasdaq fell under the weight of interest rate concerns, the Russell 2000 jumped 1.18%, indicating a shift of funds into overlooked small-cap stocks supported by a robust economy. - A 'Fundamentals-Driven' Market Takes Hold: With the market's overall direction uncertain, investors are increasingly focusing on individual company earnings. This led to extreme divergence in stock performance, with companies reporting strong earnings surging while those with disappointing results plunged. - Microsoft's Growth vs. Regulatory Risks: The company showed strong growth, with its cloud division surging 39% on AI demand. However, an FTC antitrust investigation and a $28.9 billion tax dispute weighed on the stock. Key Stock Movements - Applied Materials (AMAT): Surged over 13% after delivering earnings and guidance that beat market expectations, driven by strong demand for AI chips. - Rivian (RIVN): Soared more than 20% after announcing a vehicle delivery forecast for the year that surpassed market projections. - Pinterest (PINS): Plunged over 12% after reporting Q4 revenue that missed estimates and providing disappointing Q1 guidance. - Microsoft (MSFT): Fell 0.74%, closing slightly lower as the company's strong AI-driven growth was offset by concerns over the FTC's antitrust probe.
No reviews yet
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.