Trending 
Wall Street stocks hovered near the break-even point early Friday as investors caught their breath following a significant selloff.
The market’s cautious stability was supported by new Department of Labour data showing that U.S. consumer inflation cooled more than expected in December.
The Consumer Price Index (CPI) rose 2.4% year-on-year, a notable drop from the previous month’s 2.7%, providing a reprieve for a market that had been bracing for a much harsher report.
Market analysts noted that the “real fear” dominating the trading floor before the data release has largely dissipated.
By mid-morning, the S&P 500 and the tech-heavy Nasdaq Composite each saw modest gains of 0.1%, while the Dow Jones Industrial Average slipped just 0.1%.
These narrow movements reflect a period of consolidation after major indices tumbled by more than one per cent on Thursday, driven by a wave of selling in large-cap technology stocks.
Despite the positive inflation news, a broader sense of scepticism continues to shadow the market in early 2026.
Investors are increasingly questioning the lofty growth projections that fuelled the artificial intelligence investment boom over the past year.
There is also growing concern about the “negative effects” of rapid AI adoption, specifically how the technology might disrupt or devalue established legacy companies struggling to adapt to the new digital landscape.
As the trading day progresses, the focus remains on whether this cooling inflation will be enough to sustain a rebound or if the reassessment of tech valuations will continue to weigh on performance.
While the CPI data removed a major hurdle for the Federal Reserve, the underlying anxiety surrounding the long-term profitability of AI ventures suggests that volatility may remain a fixture of the 2026 market environment.
