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Wall Street Eases From Records as CPI Holds Steady and JPMorgan’s Charge Hits Financials

Traders raised the odds of at least two Federal Reserve rate cuts in 2026 as Treasury yields dipped.

Overview

  • December CPI rose 2.7% year over year with core at 2.6%, reflecting monthly gains of 0.3% for headline prices and 0.2% for core, according to the Bureau of Labor Statistics.
  • The S&P 500 fell 0.2%, the Dow dropped 0.8%, and the Nasdaq slipped 0.1% as major indexes pulled back from recent highs.
  • JPMorgan beat earnings and revenue forecasts but recorded a $2.2 billion loan-loss charge tied to the Apple Card portfolio, and its shares weighed on broader indexes.
  • Delta Air Lines posted mixed results, with a revenue miss and a 2026 profit forecast midpoint below expectations, while energy and precious metals advanced as oil climbed roughly 2% to 2.6% and gold and silver hit intraday highs.
  • LSEG pricing pointed to at least two 25-basis-point Fed cuts between June and December 2026 as the 10-year Treasury hovered near 4.16% and the 2-year near 3.52%, and the NFIB optimism index rose to 99.5.