On Friday, the US stock market saw an upward trend, with the Dow Jones index notably increasing. This surge coincided with a significant rise in gold prices, which climbed by more than 1.5%. A key factor influencing these market movements was the announcement that the annual US inflation rate had declined to 2.4% in January, surpassing economic predictions and reaching its lowest level in eight months. This unexpected decrease in inflation signaled a possible alleviation of economic pressures.
During Friday's trading session, US equities generally moved higher. The Dow Jones index advanced by approximately 250 points, equating to a 0.50% gain, settling at 49,701.48. The NASDAQ also saw an increase, rising by 0.41% to 22,690.60, and the S&P 500 improved by 0.61% to 6,874.47. Among the various sectors, utilities performed exceptionally well, growing by 2%, while financial stocks experienced a slight downturn of 0.3%.
A significant economic update revealed that US price pressures eased considerably at the start of 2026. The yearly consumer price inflation rate dropped to 2.4% in January from 2.7% in December. This figure was lower than the 2.5% anticipated by economists and represented the lowest inflation recorded since May 2025. On a monthly basis, the headline Consumer Price Index (CPI) increased by a modest 0.2%, which was below both the previous month's reading and the consensus estimate of 0.3%.
In the commodities market, oil prices slightly decreased by 0.2% to $62.73. Conversely, gold showed strong performance, increasing by 1.5% to reach $5,023.90. Silver also experienced a notable gain, up 2.5% to $77.605, while copper prices fell by 0.5% to $5.7590.
Across the Eurozone, most stock markets ended the day lower. The STOXX 600 index for the eurozone declined by 0.24%, and Spain's IBEX 35 Index dropped by 1.29%. In contrast, London's FTSE 100 managed a 0.22% gain, while Germany's DAX and France's CAC 40 saw decreases of 0.43% and 0.38%, respectively. Asian markets also closed lower on Friday, with Japan's Nikkei falling by 1.21%, Hong Kong's Hang Seng Index by 1.72%, China's Shanghai Composite by 1.26%, and India's BSE Sensex by 1.25%.
The overall market sentiment reflected a mix of optimism from easing inflation and rising gold prices, juxtaposed with some declines in specific equity sectors and international markets. The unexpected drop in the US inflation rate to its lowest in months suggests a potentially more stable economic environment, influencing investor confidence and commodity valuations.