Market Overview - US stocks experienced volatility, with the Dow Jones Industrial Average and Nasdaq Composite drifting below the flatline, while the S&P 500 fluctuated between small gains and losses, indicating a potential for weekly losses as Wall Street reacted to inflation data [1] Inflation Data - The Consumer Price Index reported a 0.2% increase in consumer prices for January compared to the previous month, and a 2.4% increase on an annual basis, suggesting a cooling of inflation more than expected [2] Federal Reserve Policy 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, although a growing percentage of traders are now betting on additional reductions [3] Sector Performance - Caution prevails in the market following significant selling pressure, particularly in sectors like real estate, logistics, and transportation, which were previously considered safe alternatives to tech stocks. The "Magnificent Seven" tech stocks all finished lower [4] Earnings Reports - Applied Materials saw a stock surge of over 13% due to a positive outlook driven by strong AI demand, while Pinterest shares fell approximately 25% as revenue fell short and concerns about AI risks emerged [5] - Rivian's shares increased by more than 25% following a fourth-quarter earnings beat, with the company on track to deliver its R2 midsize model before summer. Moderna's shares rose about 6% after its earnings report, recovering from a previous 10% drop due to an FDA rejection of a new flu vaccine [6]