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StocksMedium•13 February 2026•

1 min read

Dow Jones Rebounds 220 Points as Cooling CPI Boosts Rate Cut Hopes

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The Dow Jones Industrial Average staged a recovery on Wednesday, climbing approximately 220 points to trade near the 49,665 level. This rebound followed the release of January’s Consumer Price Index (CPI) data, which indicated a cooling trend in inflation. The positive data shift has reignited investor optimism regarding potential interest rate cuts by the Federal Reserve later this year. This upward movement comes just a day after the market suffered a significant 669-point selloff triggered by concerns over AI-driven industry disruptions. Market sentiment has now pivoted toward a more dovish monetary outlook, providing relief to sectors like software and real estate. Analysts suggest that the cooling inflation figures are a crucial catalyst for stabilizing equity markets after recent volatility.