US Equity Indexes Mixed as Investors Sell Technology, Communication Services Amid Soft Inflation Print

04:39 PM EST, 02/13/2026 (MT Newswires) -- US equity indexes closed mixed on Friday as investors lightened up on technology-related sectors after inflation cooled and the odds remained predominantly in favor of the Federal Reserve extending its policy pause.

The Nasdaq Composite fell 0.2% to 22,546.67, after trading higher earlier in the session. The S&P 500 rose less than 0.1% to 6,836.17, and the Dow Jones Industrial Average climbed 0.2% to 49,500.93.

Communication services and technology were among the decliners. Utilities, real estate, materials, and health care led the gainers.

In economic news, the consumer price index rose 0.2% in January, compared with a Bloomberg-polled consensus that forecast the month-on-month pace to remain unchanged at 0.3%. Annually, inflation cooled to 2.4% last month, the lowest level since June, from December's 2.7% and versus the 2.5% consensus.

Core inflation, which excludes the volatile food and energy components, accelerated to 0.3% last month from 0.2% in December, in line with expectations. The annual core measure eased to 2.5% - the lowest level since March 2021 - from 2.6%, as expected.

Markets widely expect the Federal Reserve to keep its benchmark lending rate unchanged in March and April, with current probabilities pegged at 90% and 70%, respectively, according to the CME FedWatch tool.

There is currently a 51% chance that the Fed will cut rates by 25 basis points in June, and a 16% probability of a 50-basis-point cut in the same month, implying a long wait lies ahead before policy returns to easing. Jerome Powell is scheduled to step down as the Fed's chair in May. The Fed cut interest rates three times last year, or by 75 basis points, with the final 25 basis point reduction in December.

Most US Treasury yields fell, with the two-year down 5.4 basis points to 3.41% and the 10-year lower by 5.4 basis points to 4.05%.

In company news, Applied Materials (AMAT) delivered several upside surprises in fiscal Q1 results overnight, signaling a "leap forward" rather than gradual gains, Morgan Stanley said Friday in a report. Shares of Applied Materials (AMAT) jumped 8.1%, among the top gainers on the S&P 500 and the Nasdaq.

Norwegian Cruise Line (NCLH) said it appointed John Chidsey as CEO and president, effective immediately. Chidsey most recently served as CEO of Subway Restaurants. He succeeds Harry Sommer, who stepped down as CEO and president and resigned from the board. Shares of the cruise liner fell 7.6%, among the worst performers on the S&P 500.

In the energy market, West Texas Intermediate crude oil futures were little changed at $62.85 a barrel.

In precious metals, gold futures jumped 2.1% to $5,054.2 per troy ounce, and silver futures climbed 1.7% to $76.99 per troy ounce.

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