Stock Market Today: Hotter CPI Reading Hasn't Deterred Stocks From Rising

A hotter-than-expected Consumer Price Index report initially put a lid on Tuesday’s open. CNBC reported S&P 500 futures fell after the CPI data reignited inflation concerns. Yet, the S&P 500, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), and tech stocks are all moving higher.

Where Stocks Stand Before the Opening Bell Index Proxy or Reading Premarket Move S&P 500 (GSPC) SPY +2.15% Nasdaq-100 (no Composite proxy available) Invesco QQQ Trust (NASDAQ:QQQ) +3.40% Dow (DJI) SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) +2.15% Russell 2000 (RUT) iShares Russell 2000 ETF (NYSEARCA:IWM) 3.15% VIX 9:23 a.m. ET 21.11 Inflation Puts Rate Relief at Risk

This CPI miss matters because the Fed has been tightening. The upper bound of the fed funds target moved to 4.00% from 3.75% in mid-September. A hot inflation reading makes rate relief less likely.

The bond market had been offering some help. The 10-year Treasury yield was 4.86% Friday, down from 5.21% on October 13. If the CPI report pushes yields back up, growth stocks feel it first.

Tech Gives Back Part of Monday’s Rally

On Monday, the Dow surged, and the Nasdaq climbed as tech rebounded from last week’s turbulence. This morning, the Dow proxy is higher while the Nasdaq-100 is lower. That split points to money moving out of rate-sensitive growth stocks and into blue chips.

The damage in tech was already deep. Over the past month, QQQ is down 10% while SPY is down 3%.

Fear Gauge Stays in the High-Anxiety Zone

The VIX closed Friday at 25.64, down from 28.18 on Thursday. Readings above 25 signal high fear. In mid-October, the VIX sat near 15. A hot CPI report gives options traders little reason to relax.

Tech-Heavy Portfolios Carry the Most Rate Risk

If you own mostly tech-heavy index funds, you’re taking the most rate risk right now. The S&P 500 proxy is still up 10% this year. Smaller companies are flat this morning, a sign that investors aren’t counting on lower borrowing costs soon.

CoreWeave Results Could Set the Tone for AI Stocks

The next big event comes after the close, when CoreWeave (NASDAQ:CRWV) reports. Analysts expect about $3.5 billion in revenue. With tech already under pressure, CoreWeave’s numbers will show whether demand for AI infrastructure is holding up. Watch how the 10-year yield responds during the session too. Stocks need yields to stay below their October highs.