Stock Market Today: Stocks React to Higher Inflation Data

On Friday, US stocks had a shaky start after the release of another inflation report showing higher-than-expected numbers, which raised doubts about potential interest rate cuts.

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The S&P 500 (^GSPC) dropped slightly following a recent record high, while the Dow Jones Industrial Average (^DJI) fell by 0.3%. The Nasdaq Composite (^IXIC), which includes many tech companies, showed some uncertainty.

The producer price index, a key indicator of wholesale inflation, rose by 0.3% in January, surpassing economists' forecasts of a 0.1% increase.

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This week has been full of ups and downs for the market, with investors constantly reevaluating their views on the US economy, Federal Reserve policies, and the timing of interest rate changes.

Earlier in the week, the Dow experienced a significant drop of 500 points right after reaching an all-time high, triggered by unexpectedly high consumer inflation numbers.

However, stocks have since recovered from this drop, thanks in part to a decline in retail sales, and are now on track for weekly gains.

In other news, Coinbase (COIN) saw a jump in its shares of over 14% after reporting its first quarterly profit in two years. Applied Materials (AMAT) also experienced a rise in stock price of over 9% due to positive forecasts indicating a recovery in the chip sector.

Nike Announces Job Cuts Amidst Market Challenges

Nike (NKE) recently announced plans to lay off around 1,600 employees, which represents about 2% of its workforce.

CEO John Donahoe explained that these job cuts are necessary to redirect investments towards running, women's apparel, and the Jordan brand. This decision is part of Nike's broader restructuring plan, which aims to save $2 billion over the next three years.

Despite these efforts, investors seem unimpressed, with Nike's stock showing a 2.3% decline year-to-date compared to a 5.5% gain for the S&P 500. Concerns remain about Nike's growth potential, especially in China, where the company generates about 15% of its annual sales.

Overall, while cost-cutting measures may improve margins, the focus remains on Nike's ability to grow its revenue, particularly in key markets like China.

Also Read: Global Stock Markets Inch Up as Investors Evaluate Rate Outlook; Dollar Slips Against Yen