US stock market news today shows Wall Street turned cautious as traders awaited Friday’s consumer price index (CPI). Stocks held slightly higher overall while Treasury yields eased, as traders looked for clearer evidence that inflation continues to cool after recent data disruptions tied to a short government shutdown.

Despite modest index moves, participation widened across the market. More than 300 stocks in the S&P 500 advanced, and the S&P 500 equal-weight index reached a record, suggesting gains spread beyond the largest companies. Cyclical groups led early strength, while parts of technology lagged.

US Stock Market Breadth Improves Ahead of CPI Report

Investors rotated toward economically sensitive areas as they prepared for the inflation print. Real estate and industrial shares showed relative strength, while software stocks pulled back, reflecting some caution toward higher-valuation tech names.

The Dow Jones Industrial Average held firmer than the NASDAQ, supported by transport names. Traders framed the session as positioning ahead of Friday’s data, not a risk-on turn.

Cisco Systems dropped sharply after it issued a weaker margin outlook for the current quarter. The company guided adjusted gross margin to 65.5%–66.5% for the period ending in April, below the analyst consensus cited in market reports. The update fueled concern that higher memory-chip costs will pressure profitability.

Treasury yields moved lower as bond traders positioned for Friday’s CPI release. Recent rate expectations shifted after a solid January jobs report reduced conviction in near-term Federal Reserve rate cuts. However, Thursday’s bond bid signaled that some investors want protection if inflation or growth data surprises in the opposite direction.

Treasury Yields Fall as Labor Data Stays Firm

New US labor data pointed to steady conditions. Initial jobless claims fell to 227,000 in the latest week, and continuing claims rose to about 1.862 million, according to the Labor Department. The figures kept the “soft landing” narrative in play, while they left room for the Fed to stay patient.

Housing data, however, showed clearer strain from affordability and winter disruptions. Existing-home sales fell 8.4% in January to a 3.91 million annual pace, and the median price rose to $396,800, the National Association of Realtors reported. The slide marked the steepest monthly drop since early 2022 and pushed sales to the lowest level since late 2023.

The earlier partial shutdown added noise to recent economic releases by delaying some labor market reports. This disruption made investors more sensitive to the next clean read on inflation and demand, especially as markets recalibrate rate-cut probabilities across 2026.

Inflation Outlook Sets the Tone for Stocks and Fed Policy

Economists expect Friday’s CPI report to show cooling price pressures. Survey-based forecasts point to headline CPI rising about 2.5% year over year in January, down from 2.7% in December. Forecasters also look for core CPI to ease to around 2.5%, which would mark the lowest rate since 2021.

The Federal Reserve has signaled it wants more confirmation before it changes policy again. In its January decision, the Fed held the target range for the federal funds rate at 3.50%–3.75% and reiterated that it will assess incoming data and risks when considering future adjustments.

Corporate Highlights 

• Cisco Systems (CSCO): Shares slid after a weaker margin outlook tied to higher memory costs.

• AppLovin (APP): Stock fell after guidance failed to calm AI disruption concerns.

• Fastly (FSLY): Shares surged after an earnings beat and a stronger full-year forecast.

• Kraft Heinz (KHC): Shares dipped after JPMorgan Chase (JPM) cut the stock to underweight.

• Zebra Technologies (ZBRA): Stock outperformed after issuing a better-than-expected forecast.

• McDonald's (MCD): Shares drew support after US sales grew at the fastest pace in two years.

• Southwest Airlines (LUV): Shares got attention as the airline moved to expand Starlink in-flight Wi-Fi.

• Coinbase (COIN): Shares stayed active with earnings due after the closing bell.

• Airbnb (ABNB): Shares moved into earnings risk as the company reports after the bell.

• DraftKings (DKNG): Stock traders positioned for volatility ahead of its quarterly report.

• Pinterest (PINS): The stock neared an earnings event that can shift ad-demand expectations.

• United Airlines (UAL): Airline stocks participated in the transport-led rally tied to growth optimism.

For US stock market news today, the key question is whether Friday’s CPI reinforces lower yields or revives rate worries. A softer core reading could support broader equity participation and keep cyclical leadership intact. A hotter print could lift yields, pressure high-multiple shares, and reshape expectations for when the Fed might cut again.

Also Read: US Stock Market Today: Wall Street Stays Near All-Time Highs After Soft US Consumer Spending Data