Honestly, the vibe on Wall Street right now is a bit of a head-scratcher. If you just looked at the headlines for the current stock market news today, you’d probably expect a massive victory lap. The December Consumer Price Index (CPI) report just dropped, and it basically hit the bullseye of what everyone was hoping for. Core inflation is sitting at 2.6%—the lowest we've seen since 2021.
But instead of a party, the S&P 500 and the Dow are actually pulling back from their record highs.
The Dow Jones Industrial Average shed about 400 points earlier today. It’s a classic case of the market "selling the news." Investors have been pricing in this cooling inflation for months, and now that it’s actually here, they’re looking at the bigger, messier picture. That picture includes a rocky start to earnings season and a weirdly tense standoff between the Federal Reserve and the White House.
The Inflation Disconnect: Why Nobody Is Celebrating 2.6%
On paper, today's data is great. Headline CPI rose 0.3% for the month, keeping the annual rate at 2.7%. Core prices, which strip out the wild swings of food and gas, were even better at 0.2% monthly growth.
So why the long faces?
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Well, a lot of folks aren't convinced the "official" numbers tell the whole story. While the government says inflation is chilling out, raw material costs are screaming something else. Copper and silver have been hitting all-time highs lately. Even live cattle prices are back on the warpath. If you’re a business trying to manufacture anything, your input costs aren't "cooling"—they're surging.
Then there’s the Trump factor. The administration is touting these numbers as a total victory for their deregulatory agenda, but the bond market is looking at new tariffs on Iran and potential trade shifts with a side-eye. There’s a fear that even if inflation looks good now, these policy shifts could bake in "sticky" prices for the rest of 2026.
Earnings Season Kicks Off With a Thud
If inflation was the main course, JPMorgan Chase and Delta Air Lines provided the bitter appetizer for earnings season.
JPMorgan (JPM) is usually the "gold standard" for how the economy is doing. While CEO Jamie Dimon said the American consumer is still spending, the bank’s stock took a nearly 4% hit today. They beat profit estimates, sure, but their revenue was a bit light. Plus, they took a one-time charge related to taking over Apple’s credit card portfolio, which seemed to spook some investors who were looking for a "clean" beat.
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Delta (DAL) didn't fare much better. They reported solid profits for the end of 2025, but their outlook for 2026 was... let's call it "cautious." They’re expecting free cash flow to be lower than last year. When a major airline says the future looks a little bumpy, the market usually listens. Delta shares were down as much as 5% in early trading.
The Big Winners: Chips and Biotech
It’s not all red ink, though. If you’re holding semiconductor stocks, you’re probably doing okay today.
- Intel (INTC): Jumped over 7% after KeyBanc upgraded them. Apparently, they are basically sold out of server CPUs for the rest of the year.
- AMD: Followed suit with a 3% gain. The "AI tailwind" is still very much a real thing, regardless of what the Fed does.
- Moderna (MRNA): Clocked a double-digit gain (about 14%) which finally pushed the stock into positive territory for the year.
It’s a bifurcated market. You have "old economy" stuff like banks and airlines struggling to justify their valuations, while "new economy" tech is still finding ways to surprise to the upside.
The Powell vs. Trump Drama
We have to talk about the elephant in the room. The Federal Reserve is currently in a very public, very ugly spat with the White House.
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The Department of Justice recently served the Fed with subpoenas regarding some office renovations—a move Chair Jerome Powell called a "pretext" for the White House to grab more control over interest rate decisions. Powell has been pretty blunt: he thinks the administration is trying to bully the Fed into cutting rates faster than the data supports.
This matters for your portfolio because market stability relies on the Fed being independent. If investors start to think interest rates are being set by political preference rather than economic data, the 10-year Treasury yield—which is hovering around 4.17%—could go haywire.
What This Means for Your Money
The S&P 500 is currently flirting with the 7,000 level. It’s a massive psychological barrier. Technical analysts are watching a "squeeze" pattern where the index is caught between a long-term rising trendline and a ceiling it just can't quite break.
Usually, when the market gets this tight, a big move is coming. Whether that’s a breakout to new highs or a sharp correction depends on the rest of this earnings season.
Actionable Steps for Investors
- Check Your Tech Concentration: With Intel and AMD surging while the rest of the market slumps, your portfolio might be getting "top-heavy" in tech. It might be time to rebalance.
- Watch the 10-Year Yield: If the 10-year Treasury note climbs back toward 4.3%, it’s going to put a lot of pressure on growth stocks. Use a 4.2% yield as your "danger zone" marker.
- Look Beyond the Headline CPI: Keep an eye on the "sticky" parts of inflation—like rent and services. If those don't start dropping alongside gas prices, the Fed is going to stay hawkish longer than people want.
- Don't Chase the Record: The Dow is eyeing 50,000, but chasing a round number is a dangerous game. Focus on companies with actual earnings growth rather than just "market momentum."
The current stock market news today shows an economy that is growing at a healthy 4.3% rate, but a market that is exhausted from constantly betting on perfection. Expect more volatility as we get deeper into January and more big tech companies report their numbers.
Stay focused on the long-term trend, but keep some cash on the sidelines. These "record-high" pullbacks often provide better entry points than buying into a vertical rally.