Stock Market Today: Stocks Slip as Inflation Worries Rise
Concerns over price pressures are growing ahead of next week's Fed meeting.



Joey Solitro
Stocks were choppy Friday, though all three main benchmarks closed with weekly gains. All eyes are on next week's Fed meeting – particularly after President Donald Trump's comments on interest rates during a virtual appearance at Davos – though the latest batch of earnings reports created plenty of headlines too.
At the close, the Dow Jones Industrial Average was down 0.3% at 44,424, the S&P 500 was off 0.3% to 6,101 and the Nasdaq Composite had shed 0.5% to 19,954.
The Federal Open Market Committee (FOMC) will conclude its two-day policy meeting next Wednesday afternoon. The group is widely expected to keep the federal funds rate unchanged this time around – even after Trump on Thursday told a group of business leaders gathered in Switzerland that he will "demand interest rates drop immediately."
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.
Still, as many folks have been quick to point out, the Federal Reserve remains independent of the executive branch and so at this point, there's little Trump can do to change the outcome of the next Fed meeting.
One hurdle to the Fed's rate-cutting plans is sticky price pressures. Indeed, Fed Chair Jerome Powell said in his press conference following the central bank's December meeting that any additional rate cuts will require seeing progress on inflation.
University of Michigan data shows inflation worries are growing
And the Fed isn't alone in its concerns about inflation. Today's University of Michigan consumer sentiment data showed year-ahead inflation expectations jumped to 3.3% in January from 2.8% in December – the highest since May 2024. Long-term inflation expectations also rose, to 3.2% from 3.0%.
"Concerns over the future trajectory of inflation were visible throughout the interviews and were tied to beliefs about anticipated policies like tariffs," says Joanne Hsu, director of Surveys of Consumers at the University of Michigan.
Elsewhere on the economic calendar, data from the National Association of Realtors revealed existing home sales rose 2.2% from November to December, to a seasonally adjusted annual rate of 4.24 million. This was the strongest pace since February 2024.
American Express hikes dividend
In single-stock news, American Express (AXP) reported higher-than-expected fourth-quarter earnings and revenue stock thanks to strong card member spending. The company also announced a 17% dividend hike, marking the fourth straight year it has raised its payout.
However, the Dow Jones stock slumped 1.4% after the credit card company's full-year earnings per share forecast of $15.25 fell short of what some analysts are expecting.
Price hikes fuel Verizon's beat
Verizon Communications (VZ) was one of the best Dow stocks Friday, gaining 0.9% after the telecommunications company beat top- and bottom-line expectations for its fourth quarter.
Helping boost Verizon's results was a 3.1% increase in wireless revenue, which the company says is a result of price hikes and sales perks.
Other stocks on the move
Outside of the earnings calendar, Novo Nordisk (NVO) stock soared 8.5% after the Danish pharmaceutical company announced positive early stage results for its once-weekly weight loss drug, Amycretin.
"The company is working with regulators on new indications for its GLP-1 treatments and is also focused on launching new products," wrote Argus Research analyst Jasper Hellweg in a January 16 note. He adds that given the company's "strong track record and growth outlook," NVO deserves to be trading at a higher valuation than it currently is.
Twilio (TWLO) stock surged 20.1% after the cloud communications company unveiled its financial targets for fiscal years 2025 to 2027, which exceeded analysts' expectations.
"We come away from Twilio's Investor Day positive on its direction and more confident in its ability to accelerate growth," says Oppenheimer analyst Ittai Kidron. He admits that while management's vision isn't new, it comes at a time "when the need for an efficient and compelling omnichannel customer and contextually enhanced experience is rising."
Related content
- January Federal Reserve Meeting: Updates and Commentary
- What Could Derail the Economy This Year?
- Four Ways to Invest in Quantum Computing
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.
- Joey SolitroContributor
-
Are COVID Shots Still Covered By Medicare?
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market Today
The Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial Expert
Health care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.