Stock Market Today: Dow Sinks 524 Points After January CPI Shocker
Following today's inflation data, the market now expects the Fed to start cutting rates in June vs May.


Stocks opened sharply lower Tuesday after the latest inflation data came in hotter than anticipated – all but guaranteeing the Fed will not cut interest rates at its March meeting.
Ahead of the opening bell, the Bureau of Labor Statistics said the Consumer Price Index (CPI) was up 0.3% month-over-month in January and 3.1% year-over-year. Both figures were higher than the 0.2% and 2.9% respective increases economists were expecting.
Core CPI, which excludes volatile food and energy prices, also came in above forecasts, rising 0.4% on a monthly basis and 3.9% on an annual one.
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.
The data makes it all but certain that the Federal Reserve will keep its federal funds rate unchanged at its next meeting in March. Expectations for a May rate cut declined after the January CPI report too.
According to CME Group's FedWatch Tool, futures traders are now pricing in a 35% chance the Fed will cut rates by a quarter of a percentage point, down from 52% one day ago. The odds of a June rate cut have jumped to 51% from 42% yesterday.
"A market that forcefully expected earlier easing – fortified by a series of rate cuts throughout the year – has had to digest not just a barrage of consistent Fedspeak, but the stark reality that the Fed can still not declare victory on its long campaign to quell inflation," says Quincy Krosby, chief global strategist for LPL Financial. "Even though rate cuts will probably begin in 2024, it's not if but when, the last mile is getting longer."
Icahn acquires major stake in JetBlue Airways
In single-stock news, JetBlue Airways (JBLU) surged 21.6% after a regulatory filing revealed Carl Icahn bought 33.4 million shares of the industrial stock, taking a 9.9% stake. According to the filing, Icahn acquired the position because he believes JBLU is "undervalued" and represents "an attractive investment opportunity."
Additionally, the filing indicates the billionaire investor has discussed "the possibility of board representation" with JetBlue's management and board of directors.
Heading into today's session, JBLU stock was down more than 54% on a year-over-year basis. However, shares are up more than 40% since the discount airline's proposed merger with Spirit Airlines (SAVE, -5.1%) was blocked in mid-January by a federal judge.
Coke keeps benefiting from rising prices
On the earnings calendar, Coca-Cola's (KO, -0.6%) results drew plenty of attention. The soft drinks maker reported in-line fourth-quarter earnings of 49 cents per share on higher-than-expected revenue of $10.9 billion. The company also said unit volumes were up 2% year-over-year, while prices increased 9%.
"Coca-Cola's results benefited, in part, from an ongoing post-pandemic uptick in consumers splurging on entertainment, such as sporting events and movies," says José Torres, senior economist at Interactive Brokers. "The company has passed higher input costs on to customers by raising prices, a change that has been accepted by consumers as they splurge on entertainment."
As for the main indexes, the Dow Jones Industrial Average slumped 1.4% to 38,272 and the S&P 500 fell 1.4% to 4,953. The rate-sensitive Nasdaq Composite performed the worst of the three, spiraling 1.8% to 15,655 as the yields on the 2-year and 10-year Treasury bonds jumped to levels not seen since mid-December.
Related content
- Kiplinger's Earnings Calendar for This Week
- Rising Prices: Which Goods and Services Are Driving Inflation?
- Is the Stock Market Open on Presidents' Day?
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.
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025
Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
QUIZ: Test Your Retirement IQ
Quiz Are you smarter than…everyone else? Test your retirement smarts with this quiz.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You Wish
Your will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) Contributions
Missing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out On
Most large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market Today
All three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible Heir
A spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.