Stock Market Today: Stocks Rise as Inflation Eases
Data from the Labor Department showed consumer prices fell for a sixth straight month in December.


Stocks initially struggled for direction Thursday following the release of the December Consumer Price Index (CPI). However, once investors decided they liked what they saw, the major market indexes shot higher.
The Labor Department this morning said that the CPI was up 6.5% year-over-year in December, as prices rose at their slowest pace in six months. Core CPI, which excludes volatile energy and food prices, increased 5.7% on an annual basis, the lowest reading since December 2021.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Wall Street's top minds were quick to weigh in after the release of the December inflation report, including Anthony Denier, CEO of Webull, a commission-free trading platform. "All the CPI numbers came in exactly as expected," Denier says. "While the CPI didn't overdeliver, it's moving in the right direction, and we hope the trend down continues. While this is a good trend, it won't stop the Fed from continuing to raise rates."
Still, in the wake of today's inflation update, market expectations for the Federal Reserve to deliver a 25 basis point (0.25%) interest rate hike at its February meeting jumped to 95.2% from yesterday's 76.7%, according to CME Group. This would mark the lowest increase in the Fed's benchmark rate since March 2022. (The central bank issued four consecutive 0.75% rate hikes, followed by a 0.5% increase at its last meeting in December.)
Today's data were generally well-received on Wall Street, with the major benchmarks finishing the day with solid gains. The Dow Jones Industrial Average added 0.6% to 34,189 and the S&P 500 rose 0.3% to 3,983. Meanwhile, the Nasdaq Composite closed up 0.6% at 11,001, bringing its daily win streak to five.
The Best Stocks for Level-Headed Investors
The "key" part of today's inflation report is that the Fed's interest rate hikes worked, says Wes Gottesman, market advisor at TradeZing. "However, whenever the Fed discusses increasing the rates, market volatility ensues." And with the central bank likely to keep raising rates, at least through its next two meetings, "we will expect to see further volatility," he adds.
As such, investors should remain level-headed in 2023, Gottesman says. This can include exploring the best dividend stocks, which can help offset unexpected market declines with steady and reliable income. Low-volatility stocks and low-volatility ETFs will also add doses of defense to your portfolio.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
The 'Vinyl Rule' of Retirement: Plan for Two Sides in Your Next Act
Because “Life is what happens when you’re busy making other plans.”
-
Five Destinations for Active and Chill Travelers Alike
Whether you reach for a paddleboard or a lounge chair, find your groove in a location that offers something for both kinds of travelers.
-
Stocks Slip as Job Growth Stalls: Stock Market Today
The August jobs report came in much weaker than expected, while the unemployment rate ticked higher.
-
Dismal August Jobs Report Offers Rate-Cut Relief: What the Experts Are Saying
The August jobs report came in much lower than expected, lifting the odds that several rate cuts will come through by year's end.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market Today
The S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Stocks Slide to Start September: Stock Market Today
Seasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have Today
Sherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Stocks End Strong Month on a Down Note: Stock Market Today
There was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have Today
UNH stock was a massive market beater for ages — until it wasn't.