TLDR

MARKET RECAP → Stocks soared on Wednesday as the latest consumer price index report revealed an unexpected slowdown in core inflation for December, boosting major U.S. markets.

CORE INFLATION EASES TO 3.2% IN DECEMBER, SPARKING MARKET OPTIMISM → Inflation cooled to 3.2%, slightly below forecasts, as shelter prices softened and energy costs surged. Markets cheered the news, boosting stocks and tilting Fed rate cut expectations for later this year. 📉

TIKTOK PREPARES FOR U.S. SUNDAY SHUTDOWN AMID BAN DEADLINE → TikTok plans to shut down for U.S. users Sunday unless the Supreme Court intervenes, while ByteDance fights a looming federal ban and estimates a third of its U.S. users could quit within a month. 📱

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TODAY’S TOP NEWS

Core Inflation Rate Slows to 3.2% in December, Less Than Expected

📉 Core CPI cooled slightly: December’s core inflation rate slowed to 3.2% annually, down from the prior month and slightly below forecasts, signaling modest progress in controlling price pressures. Energy prices surged 2.6% for the month, driven by gasoline, while food prices edged up 0.3%.

🏠 Shelter prices softened: Shelter costs, which heavily influence the CPI, rose 0.3% monthly and 4.6% annually—marking the smallest yearly increase since January 2022. Despite mixed details like jumps in auto insurance and vehicle costs, moderating trends in key areas offered hope for easing long-term inflation.

💹 Markets reacted optimistically: Stock futures climbed, and Treasury yields fell following the report, reflecting relief from investors. While the Fed is expected to hold rates steady at its upcoming meeting, the CPI data fueled expectations for potential rate cuts later in the year, assuming inflation continues its gradual decline.

TODAY’S TOP NEWS

TikTok Prepares For U.S. Shutdown Amid Legal Deadline

📱 Shutdown Looms: TikTok plans to disable app access for U.S. users on Sunday unless the Supreme Court blocks the federal ban. The app intends to redirect users to a website explaining the situation and allow them to download their personal data.

💼 Legal & Political Clash: The shutdown aligns with a federal law requiring TikTok’s parent, ByteDance, to sell its U.S. assets by Jan. 19, 2025, or face a nationwide ban. Efforts to delay the ban, citing First Amendment concerns, have yet to gain traction.

🔍 Wide Impact: TikTok estimates a third of its 170 million U.S. users could leave the platform if the ban persists for a month. ByteDance, with over 7,000 U.S. employees, remains under pressure as political negotiations unfold under the incoming administration.

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