Market Roundup: What Happened Yesterday and What Awaits Us Today (January 14)

Wall Street retreats after inflation data… and markets anticipate a volatile session today amid rising bets on earnings and policy.

U.S. markets ended Tuesday’s session lower, just one day after the Dow Jones Industrial Average and the S&P 500 hit new record highs, as investors digested fresh U.S. inflation data and the opening of the bank earnings season.

The Dow Jones fell around 0.8%, or roughly 400 points, while the S&P 500 slipped 0.2% and the Nasdaq Composite edged down 0.1%.

December’s consumer price index showed annual inflation rising to 2.7%, in line with economists’ expectations and unchanged from November. Core inflation, which excludes food and energy, eased to 2.6%, below forecasts of 2.8%, a development that markets viewed as moderately supportive.

Meanwhile, the yield on the 10-year U.S. Treasury remained steady near 4.18%.

On the corporate front, JPMorgan Chase kicked off the earnings season with adjusted profits that beat expectations, though revenues came in slightly below forecasts. The mixed result sent the bank’s shares down more than 4%. CEO Jamie Dimon said the U.S. economy remains resilient despite signs of a cooling labour market, while cautioning about risks from geopolitical tensions, stubborn inflation, and elevated asset valuations.

The financial sector remained under pressure for a second straight session following comments from President Donald Trump about a potential 10% cap on credit card interest rates. Shares of Visa and Mastercard both dropped more than 3%.

Within the Dow, Salesforce was the worst performer, sliding nearly 7% after an update related to its Slackbot assistant. Delta Air Lines fell about 2.5% after issuing a weaker-than-expected earnings outlook.

Technology stocks offered some support to the Nasdaq, with Intel and AMD jumping more than 6% each.

In commodities, gold futures retreated 0.5% to around $4,590 an ounce after touching a record high, while silver gained 1.6%. U.S. crude oil rose 2.5% to roughly $61 a barrel, supported by Trump’s comments on possible tariffs targeting countries doing business with Iran.

In currency markets, Bitcoin climbed to around $95,900, while the U.S. dollar index posted modest gains.

Looking ahead, markets are likely to remain volatile, with investor attention focused on corporate earnings, particularly from banks and major industrial firms. Upcoming inflation and labour market data could prove pivotal. Stronger-than-expected results may prompt a tentative rebound, but any earnings disappointments or political escalation could quickly revive selling pressure, especially in interest rate-sensitive sectors such as financials and technology.