The S&P 500 closed barely above the flatline on Friday, posting its second consecutive weekly loss, as a key consumer inflation report that came in slightly lighter than expected failed to spark a substantial rally.
The Dow Jones Industrial Average rebounded 48.95 points – its highs of the day -- to 49,500.93.
The broader index eked higher 3.41 points to 6,836.17.
The NASDAQ gave up gains and dropped 50.48 points to 22,716.87.
AI disruption fears rattled the market this week, spreading beyond the recent selloff seen in software and into the real estate, trucking, and financial services.
Financial stocks Charles Schwab capsized 10% and Morgan Stanley slid 5% this week, while software stock Workday is down 10% in the period. Shares of commercial real estate firm CBRE have lost 15% week to date.
Those fears widened to the media industry as well, hitting media stocks such as Walt Disney and Netflix. Disney shares have declined 3% on the week, while Netflix shares have dropped 6%.
The Bureau of Labor Statistics reported that the consumer price index — which measures the costs for goods and services in the U.S. economy — rose 0.2% in January, reflecting a gain of 2.4% on an annualized basis. The inflation gauge was expected to show a 0.3% increase on a month-over-month basis and a 2.5% advance from a year earlier, according to economists polled by Dow Jones.
When excluding volatile food and energy prices, core CPI came in line with expectations at 0.3% on the month and 2.5% year over year.
Prices for the 10-year Treasury gained, lowering yields to 4.05% from Thursday’s 4.10%. Treasury prices and yields move in opposite directions.
Oil prices were unchanged from Thursday at $62.84 U.S. a barrel.
Gold prices tumbled $107.40 to $5,054.80 U.S. an ounce.
