Stock Market Today: Stocks Slip as Inflation Worries Rise

Market Overview - Stocks experienced volatility on Friday, but all three major benchmarks recorded weekly gains. The Dow Jones Industrial Average closed down 0.3% at 44,424, the S&P 500 fell 0.3% to 6,101, and the Nasdaq Composite decreased by 0.5% to 19,954 [1]. Federal Reserve Insights - The Federal Open Market Committee (FOMC) is expected to maintain the federal funds rate during its upcoming meeting, despite President Trump's call for immediate rate cuts [2][3]. - Fed Chair Jerome Powell indicated that any further rate cuts would depend on progress in addressing inflation concerns [4]. Inflation Concerns - The University of Michigan reported a rise in year-ahead inflation expectations to 3.3% in January from 2.8% in December, marking the highest level since May 2024. Long-term inflation expectations also increased to 3.2% from 3.0% [5]. - Concerns regarding inflation were echoed in consumer interviews, linking them to anticipated policies such as tariffs [6]. Company Earnings and Stock Movements - American Express reported higher-than-expected fourth-quarter earnings and revenue, driven by strong card member spending, and announced a 17% dividend increase. However, its stock fell 1.4% due to a full-year earnings per share forecast that did not meet some analysts' expectations [7]. - Verizon Communications saw a 0.9% increase in its stock after surpassing earnings expectations, aided by a 3.1% rise in wireless revenue attributed to price hikes and sales incentives [8]. - Novo Nordisk's stock surged 8.5% following positive early-stage results for its weight loss drug, Amycretin, with analysts suggesting the company deserves a higher valuation based on its growth outlook [9][10]. - Twilio's stock jumped 20.1% after the company presented financial targets for fiscal years 2025 to 2027 that exceeded analyst expectations, with analysts expressing confidence in the company's growth trajectory [11][12].