If you checked your portfolio this morning, things probably looked a little bleak. But by the time the closing bell rang, the vibe had shifted. Most people spent the day wondering why was the market up today after such a rocky start. Honestly, it came down to a classic "good enough" inflation report and some heavy hitters in the banking world holding their own.
It wasn’t a blowout rally. It was more like a collective sigh of relief.
The S&P 500 and the Nasdaq managed to scrape together some gains, even though the Dow Jones Industrial Average struggled to keep its head above water for most of the session. You've basically got two stories playing out at once: a government in a standoff with the Federal Reserve and a bunch of tech companies that refuse to stop growing.
The "Cool Enough" CPI Report
Everyone was sweating the December Consumer Price Index (CPI) data.
In this economy, a decimal point can be the difference between a bull run and a total meltdown. The numbers hit the tape this morning and, well, they weren’t half bad. Annual inflation came in at 2.7%. That’s a far cry from the nightmare days of 8% or 9% we saw a few years back.
Even better? Core CPI—the stuff that strips out the wild swings of food and gas—grew by just 0.2% for the month. That puts it at 2.6% year-over-year. That is the lowest level we’ve seen since 2021.
Investors love that. It gives the Federal Reserve some breathing room. While a rate cut in January still feels like a long shot—most traders are betting on less than a 5% chance according to the CME FedWatch Tool—it keeps the door open for cuts later in the spring.
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Why the Bond Market Mattered
When the inflation data looked "cool," Treasury yields actually took a step back. The 10-year Treasury note yield dipped to about 4.17%.
Lower yields usually act like a shot of adrenaline for stocks. It makes borrowing cheaper and makes future corporate profits look more valuable today. That’s a huge reason why was the market up today in sectors like tech and biotech, which are super sensitive to interest rates.
JPMorgan and the Bank Earnings Blitz
Today was also the unofficial kickoff of earnings season. JPMorgan Chase (JPM) is usually the bellwether here, and Jamie Dimon didn’t disappoint. The bank posted solid results, particularly in its consumer banking division.
- Net Interest Income: $25.1 billion (higher than expected).
- CEO Sentiment: Dimon noted that "the U.S. economy has remained resilient."
- The Apple Card Factor: There was a one-time hit because JPM took over the Apple Card portfolio, which made the "official" profit look a bit messy, but the market saw right through it.
Other banks weren’t quite as lucky.
Financials actually faced some headwinds because of a certain proposal floating around Washington about capping credit card interest rates at 10%. That’s why you saw Visa and Mastercard taking a bit of a bruising even while the broader market tried to rally.
The Drama with Jerome Powell
You can't talk about the market today without mentioning the weirdness at the Fed. There’s an ongoing investigation into Fed Chairman Jerome Powell regarding building renovations. Yes, you read that right. Renovations.
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The Justice Department is looking into $2.5 billion spent on the Marriner S. Eccles building. President Trump has been pretty vocal about his frustrations with the Fed lately, and this investigation is adding a layer of political theater that makes investors jumpy.
However, today the market seemed to decide that the "independence of the central bank" is still intact. International bankers even released a statement standing in solidarity with Powell. It turns out, big money cares more about 2.7% inflation than they do about marble elevators in D.C.
Big Moves in Tech and Biotech
While the big indexes were "flat-ish" to slightly up, there were some massive individual winners.
Moderna (MRNA) absolutely took off. Shares jumped nearly 16% because the CEO, Stéphane Bancel, raised their sales forecast for the year. When a company that big says they’re going to make more money than everyone thought, the market notices.
Over in the chip world, Intel and AMD were the stars of the show. Intel was up over 8%, and AMD followed closely behind. There is still a massive appetite for anything related to AI infrastructure. Even when people are worried about the broader economy, they can't seem to stop buying the companies that build the "brains" of the modern world.
The Commodities Side-Show
Bitcoin is still hovering around that $92,000 to $94,000 range. It’s part of what some people call the "debasement trade." Basically, if you don't trust the U.S. dollar because of all the drama in Washington, you buy gold, silver, or Bitcoin. Silver, in particular, has been on a tear, hitting all-time highs recently.
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Actionable Insights for Your Portfolio
So, what do you actually do with all this?
Don't chase the "AI hype" blindly. Yes, Intel and AMD had a great day, but the market is becoming much more selective. If you're looking for where to put money next, keep an eye on these three things:
- Watch the 10-Year Yield: If it stays below 4.2%, growth stocks have a green light. If it spikes toward 4.5%, get ready for some pain.
- Earnings Matter More Than Headlines: Ignore the political drama for a second. Focus on whether companies like Delta or JPMorgan are actually making more money. (Hint: Delta’s outlook was a bit weak, which is why it fell 5% today).
- Inflation is the Key: As long as that CPI number keeps drifting toward 2%, the Fed has no reason to hike rates further. That "ceiling" on rates is the best friend a stock investor has right now.
The reason why was the market up today wasn't because everything is perfect. It was because the things we were afraid of—runaway inflation and a banking collapse—didn't happen. In this market, sometimes "not terrible" is good enough for a green day.
Check your diversification. Make sure you aren't just holding tech. With the Dow underperforming the Nasdaq for most of the last decade, there’s actually a lot of value sitting in those boring dividend-paying stocks that everyone is currently ignoring. That might be the real "hidden" trade of 2026.
Next Steps:
Keep an eye on the retail sales data coming out later this week. That will tell us if Jamie Dimon is right about consumers still spending their cash. If those numbers are strong, this rebound might have some actual legs.