US Stock Market Today: Wall Street Holds Near Records as Investors Weigh CPI Report and Earnings

US stocks traded in a tight range on Tuesday after investors reviewed December inflation data and early earnings reports. The S&P 500 moved between small gains and losses one day after a record close. The NASDAQ 100 held near flat. The Russell 2000 edged higher after Monday’s record finish. Traders balanced the inflation print with geopolitics and company guidance.

December CPI Steadies the Fed Rate Outlook

December consumer price data showed a moderate pace of inflation. Headline CPI rose 0.3% from November, matching economists’ estimates. Core CPI, which excludes food and energy, rose 0.2% and came in softer than most forecasts in Bloomberg’s survey.

Year-over-year readings stayed unchanged from the prior month. Headline inflation measured 2.7%, while core inflation held at 2.6%. Auto prices helped restrain core inflation. Used-car prices dropped 1.1% in the month, and new vehicle prices stayed flat. Shelter costs increased 0.4%, yet that rise remained below typical recent prints.

Some categories still signaled cost pressure. Grocery prices rose 0.7%, the biggest monthly gain since 2022. Recreation prices climbed 1.2%, the largest increase in that series. Home insurance rose 1% in the month and 8.2% over 12 months. After the release, stock futures and Treasuries rose, though those moves faded as the session continued.

Several investors said the report supports a steady policy stance. Many expect the Federal Reserve to keep rates on hold as inflation cools. Others pointed to strong wage growth as a factor that could keep services inflation firm, which may limit the case for near-term cuts.

Bank Earnings and Policy Headlines Shape Trading

Earnings season picked up as major lenders reported quarterly results. JPMorgan Chase fell at the open after it posted weaker-than-expected investment-banking fees in the fourth quarter. The bank also said a proposed 10% cap on credit card rates could materially alter parts of its business.

JPMorgan Chief Executive Jamie Dimon also addressed central bank independence after the release. He warned that Justice Department pressure on the Federal Reserve could weaken the institution. He said higher borrowing costs could follow if markets doubt the Fed’s autonomy.

Bank of New York Mellon rose after it reported profit above analyst expectations, supported by higher fee revenue and interest income. Delta Air Lines declined after it issued a profit outlook below estimates. Together, the results added to mixed index moves near all-time highs as investors priced in company-specific risks.

AI Infrastructure Stocks Turn Volatile as Capex Bets Rotate

Investors also tracked swings in AI infrastructure stocks, which delivered many of 2025’s top S&P 500 gains. Several names tied to data center cooling were sold off last week after NVIDIA Chief Executive Jensen Huang said new Rubin chips may not need separate water chillers. Johnson Controls and Modine, both viewed as chiller beneficiaries, dropped after the comments.

Other suppliers like Sandisk surged after Huang highlighted demand for memory and storage. The stock extended a steep rally from 2025 into early 2026, which kept it among the index’s strongest performers. The diverging moves underscored how quickly the AI supply chain can reprice around new product details.

Meanwhile, some investors have responded by diversifying within the AI buildout theme. Tortoise Capital Advisors launched the Tortoise AI Infrastructure ETF, ticker TCAI, in August, with holdings across cooling, energy, memory, and construction services. The fund has gained about 25% since August 5.

Traders also focused on whether hyperscalers will deliver on large capital spending plans. Analysts project Meta Platforms, Microsoft, Amazon, and Alphabet will spend heavily over the next 12 months. Any slowdown could pressure shares tied to data center construction. In addition, constraints tied to power, water, labor, and equipment could delay projects and drive sharp rotations.

Alphabet reinforced the AI rally after it crossed a $4 trillion market value on Monday. Investors will keep watching inflation trends and earnings guidance as they assess the outlook for US stocks, the Federal Reserve, and growth.

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