"The markets were lower out of the gate this morning in response to the latest economic data that shows a slight economic slowdown coupled with signals of rising inflation. A one-two punch of the tariff effect and a weary consumer sent economic growth two steps back. All three of the major stock market averages started in the red, but technology stocks are attempting a comeback. Google parent Alphabet ( Nasdaq: GOOGL | GOOGL Price Prediction) and Micron Technology ( Nasdaq: MU) are buoying sentiment."
"For full-year 2025, growth came in at 2.2%, slowing from 2024's 2.8% rate. Inflation reared its head again. December PCE data, the Federal Reserve's preferred gauge, ran slightly hotter than forecasts, with headline PCE at 2.9% and core PCE hitting 3%. The uptick signals that price pressures are sticky, revisiting levels last seen in late 2023 and adding another layer of uncertainty to the Fed's monetary policy outlook."
Markets opened lower as economic data showed a slowdown alongside rising inflation. Q4 GDP grew at a 1.4% annualized pace, missing expectations, while full-year 2025 growth slowed to 2.2% from 2024's 2.8%. December PCE ran hotter than forecasts, with headline PCE at 2.9% and core PCE at 3%, indicating sticky price pressures. The hotter inflation print adds uncertainty to Federal Reserve policy. Major averages started in the red, though technology names helped sentiment, and specific stocks moved on earnings, asset sales, or strong sales reports.
Read at 24/7 Wall St.
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