Microsoft Surpasses Apple, But CPI Report Drags US Stocks Lower

US stocks are lower after consumer-price index data showed inflation was slightly hotter than expected in December.

Signs of cooling inflation fueled a big rally across a range of markets toward the end of last year, with investors piling into everything from Treasurys to stocks to low-rated corporate debt.

Thursday’s data was not quite as encouraging as some other recent reports. But interest-rate futures were still showing that investors expect the Federal Reserve to cut interest rates in March.

The S&P 500, Dow Jones Industrial Average and Nasdaq Composite opened higher after the CPI report, then turned negative. On Wednesday, the S&P 500 ended 0.3% below its all-time closing high set in January 2022.

Microsoft passed Apple as the most valuable US company. Its market value recently stood at about $2.9 trillion, according to Dow Jones Market Data.

Treasury yields were choppy. The yield on the benchmark 10-year note drifted lower overnight, climbed after the CPI report and was roughly 4.04% in recent trading, up from 4.03% Wednesday.