2026.02.1315:55:01UTC+00US Stocks Inch Higher

US stocks edged higher on Friday, supported by gains in software companies and a softer January inflation reading. The three major indices rose 0.2%, partially reversing the sharp sell-off from the previous session. Headline and core inflation eased in line with expectations, reinforcing market bets that the Federal Reserve will deliver multiple rate cuts this year.

Software-as-a-service names found some relief after heavy selling earlier in the week, which had been driven by concerns that advances in automation tools could threaten parts of the sector. Salesforce, ServiceNow, and Oracle climbed between 3% and 4%. Elsewhere, Applied Materials and Arista Networks jumped 13% and 6%, respectively, following their earnings releases.

However, chipmakers and companies that have powered the surge in data center capital expenditures remained under pressure. Nvidia, Alphabet, and Amazon fell as much as 1.5%. Mounting worries over potentially excessive spending in the industry left the Nasdaq 100 on track for a third consecutive week of losses.