Stock market today: Live updates

The S&P 500 rose on Friday after a key consumer inflation report came in slightly lighter than expected, but stocks were still on pace for a losing week.

The broad market index traded up 0.4%, while the Nasdaq Composite climbed 0.2%. The Dow Jones Industrial Average added 127 points, or 0.3%.

The Bureau of Labor Statistics reported that the consumer price index — which measures the costs for goods and services in the U.S. economy — rose 0.2% in January, reflecting a gain of 2.4% on an annualized basis. The inflation gauge was expected to show a 0.3% increase on a month-over-month basis and a 2.5% advance from a year earlier, according to economists polled by Dow Jones.

When excluding volatile food and energy prices, core CPI came in line with expectations at 0.3% on the month and 2.5% year over year.

“Today’s inflation report is a relief for investors rattled by [artificial intelligence] disruptions in the stock market. It also offsets this week’s strong payrolls report, giving the Fed a little more reason to lean dovish. However it’s still well above the central bank’s target and does little to move the needle near term,” said David Russell, global head of market strategy at TradeStation. “Policy expectations are going nowhere in a hurry.”

Fears that AI would disrupt revenue potential in various industries rattled the market this week, spreading into notable areas such as the real estate, trucking, software and financial services. Financial stocks Charles Schwab and Morgan Stanley have fallen 10% and 6% this week, respectively, while software stock Workday is down 10% in the period. Shares of commercial real estate firm CBRE have lost 14% week to date.

Those fears widened to the media industry as well, hitting media stocks such as Walt Disney and Netflix. Disney shares have declined 3% on the week, while Netflix shares have dropped 6%.

With that pressure, the three major averages are on track for weekly losses. The S&P 500 and 30-stock Dow are both off 1%, and the tech-heavy Nasdaq is set for a nearly 2% slide in the period.

“Investors show no mercy for anything seen as an AI loser. The list is growing by the day, driving divergence between new/old economy sectors and U.S./[Rest Of World] equities,” said Barclays analyst Emmanuel Cau. “Amid erratic price action and fears of AI disruption turning into a broader macro/credit issue, growth, rates & earnings backdrop is okay.”

Semiconductor giant Applied Materials was a bright spot in Friday’s session, jumping 12% on the back of strong earnings results and encouraging outlook. Airbnb was also a winner, as shares rose 6% as investors cheered the rental company’s upbeat guidance. Pinterest shares, by contrast, slipped 24% after the company posted fourth-quarter results that missed expectations and issued a weak forecast.