Duolingo, Alibaba lead Friday's market cap stock movers

Investing.com - U.S. stocks hovered around both sides of the flatline on Friday as investors assessed a crucial inflation reading preferred by the Federal Reserve.

By 09:33 ET (14:33 GMT), the benchmark S&P 500 had dropped by 11 points or 0.2%, the tech-heavy Nasdaq Composite had fallen by 145 points or 0.8%, and the 30-stock Dow Jones Industrial Average had edged up by 21 points or 0.1%.

The main averages sank in the previous session, dragged down in particular by Nvidia (NASDAQ:NVDA), which sank by 8.5%, wiping out $274 billion from its market value. Sentiment was also buffeted by fresh tariff remarks from U.S. President Donald Trump, who said that previously delayed levies on Mexico and Canada would come into effect on March 4, along with an additional 10% duty on Chinese goods.

PCE inflation data

U.S. inflation matched the prior month’s pace and slowed on an annualized basis in January, while consumer spending unexpectedly contracted, presenting a muddled economic picture for Federal Reserve policymakers considering the path ahead for interest rates.

The Personal Consumption Expenditures (PCE) Price Index ticked up by 0.3% last month, according to data from the Commerce Department’s Bureau of Economic Analysis on Friday. The figure was in line with December’s pace, which was itself the largest increase since April 2024.

In the 12 months through January, PCE inflation eased slightly to 2.5% from 2.6%, meeting economists’ estimates.

Stripping out food and energy, so-called core PCE inflation came in at 2.6% year-on-year, cooling from 2.9% in December and equalling predictions. The initial December gauge was at 2.8%.

On a monthly basis, core PCE accelerated marginally to 0.3% from 0.2%, also meeting forecasts.

Meanwhile, consumer spending, which accounts for a large bulk of U.S. economic activity, dropped by 0.2% following an upwardly-revised expansion of 0.8% in December. Analysts had seen the number increasing by 0.2%.

The Fed, which keeps particularly close tabs on the PCE data, pushed pause on a cycle of interest rate reductions at its last meeting in January, partly citing concerns around the possible impact of U.S. President Donald Trump’s import tariff and immigration plans on inflation. The central bank had slashed borrowing costs by 100 basis points to a range of 4.25% to 4.5% in a series of gatherings late last year. It had hiked rates by a sharp 5.25 percentage points in 2022 and 2023 in a bid to stamp out elevated price pressures.

Dell slips

In individual stocks, Dell (NYSE:DELL) slumped in early U.S. trading after the group predicted that it would post a drop in adjusted gross margin in its 2026 fiscal year.

Weighed down by increasing costs associated with building out its AI servers, as well as tepid demand for its PCs, Dell said its full-year adjusted gross margin rate would fall by around 100 basis points.

Speaking to analysts, Chief Operating Officer Jeff Clarke also flagged that Dell is gauging the possible effect of Trump’s tariffs on input costs. Clarke noted that should these expenses rise, "it may require us to adjust prices."

HP (NYSE:HPQ) also unveiled softer guidance for the current quarter, warning that U.S. import tariffs on China would drive up its costs. Shares in the PC maker fell.

Bitcoin slumps

Bitcoin tumbled on Friday, heading for steep monthly losses as fears over U.S. tariffs weighed on risk appetite. Crypto-exposed stocks also declined.

Digital assets soared after Trump’s election victory in November, as investors hoped he would usher in a new era of looser regulation on the crypto industry. But, with expectations for immediate sweeping policy moves fading and tariff plans hitting the appeal of speculative assets, the price of Bitcoin has slipped in recent days.

Bitcoin is poised to decline over 23% in February, according to CoinMarketCap data.

Elsewhere, gold prices remained under pressure as investors awaited the PCE data, while oil prices were on track for their first monthly decline since November.