Inflation cooled more than expected in January, and growth-sensitive stocks quickly caught a bid.

The annual rate of consumer-price inflation slowed to 2.4%, down from 2.7% in December and below economist expectations of 2.5%.

The print marked the lowest inflation reading since May 2025, reinforcing the narrative that price pressures are gradually easing at the start of the year.

On a monthly basis, headline CPI rose 0.2%, undershooting both December's 0.3% increase and consensus estimates.

Notably, core inflation — which excludes food and energy — also edged lower on an annual basis, slipping to 2.5% from 2.6% in December. That marked the lowest core reading since March 2021 and came in line with forecasts.

Month over month, core CPI increased 0.3%, slightly firmer than December's 0.2% gain but still within expectations.

Stocks Reacting To January Inflation Report

The cooler-than-expected inflation print is reviving risk appetite across some of the market's most growth-sensitive names, as investors increasingly price in the possibility that the Federal Reserve could move toward interest-rate cuts later this year.

According to Benzinga Pro's movers tool, the following stocks posted outsized premarket gains after the inflation release:

• Corpay Inc. (NYSE:CPAY) +9.17%
• TC Energy Corp. (NYSE:TRP) +4.40%
• DraftKings Inc. (NASDAQ:DKNG) +3.91%
• Coinbase Global Inc. (NASDAQ:COIN) +3.63%
• Regencell Bioscience Holdings Ltd. (NASDAQ:RGC) +3.33%
• Rivian Automotive Inc. (NASDAQ:RIVN) +3.22%
• Coherent Corp. (NYSE:COHR) +2.82%
• Reddit Inc. (NYSE:RDDT) +2.68%
• YPF S.A. (NYSE:YPF) +2.67%
• Moderna Inc. (NASDAQ:MRNA) +2.60%

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