Stock market today: S&P 500, Dow, Nasdaq rise after CPI inflation cools more than expected

Market Overview - US stocks experienced a rise on Friday, with the S&P 500 gaining approximately 0.6%, while the Dow Jones Industrial Average and Nasdaq Composite increased by roughly 0.4% and 0.5% respectively, despite being on track for weekly losses [1] Inflation Data - The Consumer Price Index indicated that consumer prices rose by 0.2% in January compared to the previous month and increased by 2.4% year-over-year, reflecting a cooler-than-expected inflation reading [2] Federal Reserve Expectations - The inflation report is expected to influence Federal Reserve policy, with traders increasing bets on a potential quarter-point interest rate cut in June, while most anticipate two cuts by the end of 2026 [3] Sector Performance - The market saw significant selling pressure due to concerns about AI disruption affecting traditional sectors like real estate, logistics, and transportation, leading to sharp weekly losses for the Dow, S&P 500, and Nasdaq [4] Earnings Reports - Applied Materials (AMAT) stock surged by up to 10% following a positive outlook driven by strong AI demand, while Pinterest (PINS) shares fell by as much as 20% due to revenue shortfalls and concerns over AI risks [5] - Rivian (RIVN) shares increased by over 25% after beating fourth-quarter earnings expectations, with plans for its R2 midsize model to be delivered before summer, and Moderna (MRNA) shares rose by 10% after exceeding quarterly revenue estimates due to strong sales of its Covid vaccine [6]