Wall Street’s main indices fell this Tuesday, January 13, because a slip by JPMorgan dragged down banking stocks, forcing markets to give up initial gains after data showing a slowdown in inflation in the US.
In this context the index Dow Jones Industrials fell 0.8% to 49,191.99 points; he S&P500 lost 0.2% to 6,962.12 points and the Nasdaq Composite depreciated 0.1% to 23,709.87 points.
Core inflation slowed slightly
With investors pending the events surrounding the Fedthe publication of the consumer price index (IPC) in the US for December, a closely monitored inflation indicator, generated greater attention.
General inflation in the US in December was similar to that of the previous month, with an increase of 2.7% annually and 0.3% month-on-month. Both indices They equaled November rates and were in line with expectations of the economists.
Excluding volatile items such as food and fuel, the so-called “underlying” CPI of the Department of Labor was placed in a 2.6% annualized and 0.2% month-on-month. These values were also the same as those of November and slightly lower than estimates.
Inflation and the strength of the labor market are the two most important factors the Fed considers in setting interest rates. Nonfarm payrolls data released last week showed true resilience in the labor sector.
“Chances of a January rate cut remain slim; March seems more likely“said Jarek Sklodowki, COO of Financial Markets Online. ““The US recovery is still underway, although job creation is disappointingly modest, so the Federal Reserve will not be in a hurry to cut rates, but disinflation gives it the freedom to do so,” he noted.
Start of 4th quarter earnings season
JPMorgan Chase (-4.2%) reported fourth-quarter earnings and revenue that beat estimates, but underperformed its investment banking division (lower fees), just as the acquisition of Apple’s credit card program (+0.3%) weighed on its profits. The country’s largest bank recorded a 7% drop in inflows after considering a previously disclosed credit reserve of $2.2 billion linked to the acquisition of Apple’s credit card program from Goldman Sachs (-1.2%).
For its part, Bank of America (-1,3%), Wells Fargo (+0,1%) y Citigroup (-1.2%) will publish their results on Wednesday. In conjunction with inflation data, The result of the banking quarterly could influence the tone of the markets stocks in the first weeks of 2026. Strong banking results could contribute to an optimistic outlook on the state of the US corporate sector and possibly alleviate some concerns among more Asian investors.
Besides, Delta Air Lines (-2.3%) reported adjusted fourth-quarter earnings that slightly beat analysts’ expectations. However, shares fell after the airline’s revenue missed estimates and investors reacted to disparate projections for 2026.
Meanwhile, chip stocks remained on the rise, led by Advanced Micro Devices Inc (+6,3%) e Intel Corporation (+7.3%), after Keybank improved the rating of both companies to “overweight” and raised its price target, driving the stock more than 6% higher.
Oppenheimer said “Adobe did not develop as expected”
In a note that downgraded their recommendation from “market outperform” to “market perform,” the analysts noted that Adobe stock offers “good medium-term opportunities” at a “cheap” price. However, they warned that the prospects for applications of software in 2026 are “challenging.”
The segment has lagged the benchmark S&P 500 and tech-heavy Nasdaq for the past four years in a row, with small- and mid-cap software names suffering one of the worst years of performance in 2025, analysts said.
“A bearish AI narrative regarding limitations of software vendor models during its technological transition is leading investors to lose confidence in multi-year growth trajectories and reduce the multiples of software companies,” they deepened.
For Adobe, whose products like Premiere Pro and InDesign made the company a powerhouse in creative software, anticipated growth momentum in its digital media business from its AI initiatives “no “It developed as we expected.”they added. Instead, digital media growth slowed last year.
Adobe has been working to incorporate AI into its product suite in a bid to fend off competition from newer rivals such as Midjourney and OpenAI, which have specialized in the technology.
“A challenging operating environment during the AI technology transition leading to a uninspiring and slowing growthinconsistent execution with product cycles, concerns about the durability of its competitive advantage, lukewarm investor interest in owning software names, and downward year-over-year operating margin guidance into fiscal 2026 are likely to weigh negatively on sentiment about the company’s opportunities this year, and will limit near-term upside potential for Adobe stockwhich fell more than 6% during the last year.”
