New York, January 13, 2026, 10:01 EST — Regular session underway.
- The Dow dropped over 300 points in early trading, with Visa and JPMorgan dragging the index down.
- December CPI came in line with forecasts, while core inflation edged slightly below expectations.
- Attention shifts to the remaining big-bank earnings due this week.
The Dow Jones Industrial Average dropped 307 points, or 0.6%, to 49,283 in early trading Tuesday, down from its 49,616 open. Visa tumbled close to 4%, and JPMorgan lost over 2%, while Intel climbed nearly 6%, according to data.
The pullback caught attention after the Dow hit a record close. Investors are weighing if easing inflation will outweigh volatile earnings reports and new political chatter surrounding the Federal Reserve.
U.S. consumer prices edged up 0.3% in December, pushing the annual increase to 2.7%, Reuters reported. Core CPI, which excludes food and energy, climbed 2.6%. Art Hogan, chief market strategist at B. Riley Wealth, described the data as “milder than anticipated.” On the other hand, Ellen Zentner from Morgan Stanley Wealth Management said it “doesn’t give the Fed what it needs” to justify cutting rates later this month. Reuters
Treasury yields fell following the data, offering some relief to equity investors rattled by volatile rate swings tied to every inflation report and Fed policy headline.
Monday saw the Dow climb 86 points to hit a new record of 49,590.20, buoyed by rallies in Walmart and tech stocks. Financial shares, however, slipped after President Donald Trump proposed a one-year freeze on credit-card interest rates beginning January 20.
JPMorgan led off big-bank earnings with an adjusted profit of $5.23 per share, beating the $5 consensus, buoyed by stronger markets revenue, Reuters reported. CEO Jamie Dimon noted, “The U.S. economy has remained resilient.” Still, David Wagner, a portfolio manager at Aptus Capital Advisors, cautioned the “bar for perfection” in the stock is already high following a strong 2025. Reuters
The Fed’s influence remains a key factor on the tape. Dimon warned that political pressure on the central bank is “probably not a great idea,” as it might raise inflation expectations and drive interest rates up. At the same time, BNY CEO Robin Vince urged caution against “shake[ing] the foundation of the bond market,” Reuters reported. Reuters
Dow traders saw a clear early trend: rate-sensitive financials and certain healthcare stocks dragged the index down, overshadowing gains in chip-related shares. As a result, the Dow trailed behind the tech-focused Nasdaq.
But the downside scenario is straightforward. Should inflation remain stubborn — or if investors start to believe Washington’s pressure campaign risks the Fed’s independence — yields could spike, deflating valuations that are already stretched following the climb to record highs.
Bank of America, Citigroup, and Wells Fargo are set to release earnings on Wednesday, with Goldman Sachs and Morgan Stanley following on Thursday, according to Investing.com.
