Stocks Rise Following Tame Inflation Report; Tech Sell-Off Slows

Rivian Predicts Big Jump in Sales as R2 SUV Set to Launch Soon. Its Stock Soars

FROM 18 minutes ago

A solid fourth quarter and ambitious plans for 2026 have Rivian stock soaring Friday.

Rivian (RIVN) shares jumped more than 25% after the electric vehicle maker narrowly topped revenue estimates at $1.29 billion, while recording a smaller adjusted loss than analysts had forecast at 54 cents per share.

The company said its plans to start selling the R2, an SUV that will be cheaper than its current vehicles, remain on track for the second quarter. Rivian said that more details about its product lineup will be coming at a March 12 event.

Rivian expects to deliver between 62,000 and 67,000 vehicles this year, a more than 50% jump at the midpoint from the 42,247 it delivered in 2025. The company hopes software upgrades and its new model can help drive demand that has slowed in the U.S. after the Trump administration allowed EV tax credits to expire last September.

Wedbush analysts said they remain confident in Rivian’s long-term plan and said the EV maker is in the midst of a “massive transformation” as it looks to streamline production of its R1 vehicles and ramp production of R2s this year. Wedbush has an “outperform” rating on the stock and a $25 price target.

Rivian shares were up 26% at $17.70 in recent trading. Despite today’s surge, the stock is still down more than 10% since the start of 2026 after hitting its highest level in two years in December.

–Aaron McDade

Applied Materials Jumps as AI Chips Drive Profit Growth

FROM 1 hr 19 min ago

Shares of Applied Materials (AMAT) jumped 9% on Friday after the maker of semiconductor manufacturing equipment said profit surged last quarter amid booming demand for advanced chips. 

Applied Materials’ profit soared more than 70% to $2.03 billion, or $2.45 a share, in the first quarter of its 2026 fiscal year. Revenue declined 2% to $7.01 billion. 

“The need for higher performance and more energy-efficient chips is driving high growth rates for leading-edge logic, high-bandwidth memory and advanced packaging,” said CEO Gary Dickerson in a press release. Dickerson said demand in those areas should help Applied Materials grow its semiconductor equipment business by more than 20% this year. 

The AI data center buildout has caused a spike in demand for more powerful, energy-efficient semiconductors. That’s been a boon to companies like Applied Materials whose equipment and processes enable the fabrication of said chips. 

Dickerson expects demand to remain strong through this year, when he estimates global semiconductor industry revenues will hit $1 trillion. 

Applied Materials forecast current quarter revenue will fall between $7.15 billion and $8.15 billion, and adjusted earnings per share between $2.44 and $2.84. The upper-end of those ranges would represent double-digit growth on both metrics. 

Applied Materials stock was already flying high heading into Thursday’s report, with shares up nearly 28% since the start of the year. As of midday Friday, the stock is up about 95% in the last 12 months. 

AI Fears, Political Pressure Put Apple Stock on the Back Foot Again

FROM 2 hr 27 min ago

Apple (AAPL) stock is in the red again. 

Shares slumped 5% yesterday after the Federal Trade Commission said it had sent a warning letter to the company over its Apple News service. The stock was also pressured by reports Wednesday that the company was once again delaying the release of some AI-powered Siri features, adding to persistent concerns the iPhone maker’s AI capabilities lag peers. 

Apple and its Magnificent Seven peers are having a rough 2026 so far. Shares of hyperscalers Alphabet, Microsoft (MSFT), Amazon (AMZN) and Meta (META) have been weighed down by concerns that the tech giants are overspending on AI infrastructure. Their massive data center spending has historically been a boon to chipmaker Nvidia (NVDA), but even that stock is treading water amid anxiety about tech sector valuations. 

Before this week’s setbacks, Apple stock appeared to have turned a corner. Apple announced in mid-January that it had selected Alphabet’s (GOOG) Gemini to power its future AI features, including the updated Siri features that are reportedly delayed. Weeks later, Apple reported record results for the all-important holiday quarter, when iPhone and services revenue easily beat estimates. 

Apple shares rose nearly 8% in the week following that earnings report, lifting the stock into the green for the year. Thursday’s slump erased most of those post-earnings gains. Shares slid about 0.8% Friday morning, putting them down nearly 4.5% year-to-date.

What Does the Inflation Report Mean for the Federal Reserve?

FROM 3 hr 7 min ago

Softer inflation will likely give the Federal Reserve breathing room to wait and see how the economy evolves in the coming months.

According to the CME Group’s FedWatch Tool, traders are pricing in a 70% chance that central bankers will next cut their influential fed funds rate at their June meeting. That was up from 66% just before the report was released. The FedWatch tool forecasts rate movements based on fed funds futures trading data.

“January’s inflation data, paired with a strong job payroll report, support the FOMC members who think the easing cycle should remain on hold in the coming months,” wrote Moody’s Analytics Economist Matt Colyar.

–Taylor Tompkins

Inflation Was Tame in January

FROM 4 hr 7 min ago

The Consumer Price Index rose 2.4% over the year in January, down from a 2.7% annual increase in December. That was less than economists expected and the lowest since May.

Core inflation fell to a 2.5% annual increase from 2.6% in December, the lowest since March 2021. Economists expect core inflation to be a better measure of inflation because it excludes volatile food and energy prices, which can fluctuate for factors not reflective of the broader economy.

–Taylor Tompkins

Stock Indexes Slip Ahead of January CPI Report

FROM 4 hr 45 min ago

Futures contracts connected to the Dow Jones Industrial Average were down about 0.2% in premarket trading.

S&P 500 futures were also off 0.2%.

Nasdaq 100 contracts dipped 0.3%.