Global Shares Slip as Cooling Inflation Keeps Rate-Cut Expectations Alive

Global financial markets traded cautiously on 13 February as investors assessed softer-than-expected U.S. inflation data while remaining wary of ongoing technology-sector risks. The combination of moderating price pressures and fragile equity sentiment created a mixed backdrop across asset classes.

Fresh data showed that U.S. consumer prices rose 0.2% in January, with annual inflation at 2.4%, slightly below economists’ forecasts. The report strengthened expectations that the Federal Reserve could still move toward interest-rate cuts later this year, though policymakers are likely to remain cautious given persistent price pressures in some service categories.

Wall Street opened with limited movement as markets digested the data. The Dow Jones Industrial Average slipped marginally, the S&P 500 hovered near flat, and the Nasdaq edged lower, reflecting restrained optimism rather than a decisive risk-on shift. Communication services stocks were among the primary drags on the session.

Globally, equities eased from record levels ahead of the inflation release, with investors increasingly concerned about shrinking profit margins in major technology companies and the broader implications of artificial-intelligence disruption. The cautious tone underscored a broader rotation toward defensive positioning.

In commodities, gold rose more than 1% as the softer inflation print revived hopes for monetary easing, enhancing the appeal of non-yielding assets.

For traders, the session highlighted a key market dynamic: while the disinflation trend supports the long-term easing narrative, uncertainty around growth, corporate earnings, and technology valuations continues to limit risk appetite. Markets are likely to remain highly data-dependent as investors recalibrate expectations for monetary policy in the months ahead.