What does cooling U.S. CPI mean for the stock market today?

A softer CPI at 2.4% headline and 2.5% core lowers pressure on rates, which supports equity valuations. It can help growth and dividend sectors at the same time. Still, earnings quality, guidance, and geopolitics drive day-to-day swings. Expect relief rallies, but keep risk controls in place as data flow remains active.

Why are staples and materials leading the sector rotation?

Staples offer steady demand and cash flows, which help when growth cools. Materials can benefit from supply discipline and select global projects. With macro uncertainty and AI jitters, investors favor reliability and dividends. This mix can cushion portfolios while leaving room to add cyclicals when valuation and momentum improve.

How should Canadians view VIX volatility right now?

Treat VIX volatility as a risk thermometer, not a timing tool. Elevated or jumpy readings suggest wider intraday swings and a higher chance of false breakouts. Keep position sizes modest, use limit orders, and lean on diversified ETFs. Consider a cash or T-bill buffer to handle pullbacks without selling core holdings.

Is the S&P 500 a buy after the recent pullback?

Technicals are mixed: RSI near 44 and oversold CCI argue for potential stabilization, while a weak ADX warns trends are fragile. A staged approach helps. Add on weakness near support levels, stick to predefined stop-loss rules, and favor quality balance sheets. Consider low-cost index ETFs for broad exposure.

What is a practical plan for the stock market today?

Use a barbell: quality defensives plus selective cyclicals or AI enablers on dips. Keep a cash or T-bill ladder for flexibility. Rebalance monthly, control fees, and align currency exposure with your spending. Track key levels and data, but avoid overtrading on headlines. Consistency compounds better than bold bets.

Global Market Insights

^GSPC Today, February 16: CPI Cools; Rotation to Staples, Materials

ByDanny Kontos February 17, 2026

The stock market today steadied after U.S. CPI cooled to 2.4% year over year, with core at 2.5%, the lowest since April 2021. That print supports hopes for rate cuts while AI-related disruption fears keep trading choppy. We see rotation into defensives such as consumer staples, materials, and utilities. For Canadian investors, this shift fits the TSX’s sector strengths. We track ^GSPC levels and VIX volatility as positioning guides, while cooling U.S.–Iran tensions add a modest tailwind.