From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 1/13/2026
U.S. stocks are lower Tuesday morning as investors digest the latest inflation reading and corporate earnings. The inflation reading solidified the belief that the Fed would leave rates unchanged until June, when the first rate cut of 2026 is expected. Domestic stocks rallied yesterday after plummeting at the opening bell. Both the DJIA and S&P 500 finished with record high closes, while the Nasdaq reached an intraday high.
Looking at economic data today, the Consumer Pirce Index increased 0.3% in December and 2.7% over the last year, both matching expectations and unchanged from the previous month. Core consumer prices were up 0.2% for the month, just below expectations of 0.3%. Over the last year, core prices were up 2.6%, unchanged from last month and less than expected.
New home sales were down 0.1% to an annual rate of 737,000 in October, above expectations of 710,000. The median sales price was $392,300, down 3.3% from September and 8.0% from the previous year. There is currently a 7.9-month supply of homes for sale at the current sales rate, unchanged from last month.
The NFIB Small Business Optimism Index rose 0.5 points in December to 99.5, versus expectations of remaining unchanged for the month. The Uncertainty Index fell seven points to a reading of 84, the lowest level since June 2024. Of the ten components, five were unchanged and two were higher.
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