GDP Revision Shock, Sticky Inflation Fan Stagflation Fears: What's Moving Markets Friday?

Economic Growth and Inflation - The Bureau of Economic Analysis revised fourth-quarter 2025 GDP growth to 0.7% annualized, a decrease of 0.7 percentage points from the previous estimate [2] - The January Core Personal Consumption Expenditure (PCE) price index showed a 3.1% annual increase, up from the previous 3%, indicating a further deviation from the Federal Reserve's 2% inflation target [2] Market Reactions - U.S. equities traded in mixed territory, with the Dow Jones Industrial Average rising 0.3% to 46,820, while the S&P 500 remained flat at 6,670, and the Nasdaq 100 was little changed at 24,530 [4] - The Russell 2000 edged down 0.1% to 2,490 [4] Oil Market Dynamics - West Texas Intermediate crude held near $95 a barrel, while Brent crude returned above $100 a barrel, influenced by ongoing geopolitical tensions [3][4] - Washington temporarily eased sanctions on Russian crude to expand global supply, but tensions in the Persian Gulf continue to threaten energy flows [3] Treasury Yields and Currency Movements - The 10-year U.S. Treasury yield remained at 4.26%, and the 30-year note yielded 4.88% [5] - The euro fell 0.5% against the dollar to 1.1450, and the British pound dropped 0.7% to 1.3250 [5]