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Indexes down: Dow 0.14%, S&P 500 0.06%, Nasdaq 0.23%

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US inflation increases less than expected in January

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Report says Trump planning aluminum, steel tariff rollback

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Applied Materials ( AMAT ) jumps after upbeat Q2 earnings forecast

(Updates after markets open)

By Twesha Dikshit and Purvi Agarwal

Feb 13 (Reuters) -

U.S. stocks slipped on Friday and were on course for their

worst ​week since November as losses in technology stocks

eclipsed relief from softer-than-expected ‌inflation data.

Equity markets have pulled back from record levels as

fears of AI-driven disruption fueled a selloff in

sectors

spanning software, insurance and even trucking companies,

while stronger-than-expected

January ⁠jobs data

sowed doubts about the pace of monetary policy easing this

year.

There was some relief on Friday after ⁠data showed U.S.

consumer prices increased

less than expected

in January, prompting traders to

slightly raise

the odds ‌of a Federal Reserve interest-rate ‌cut in June to

69% from 63% earlier.

"The important takeaway for both (the) rate markets and

equities is that the trend in disinflation continues. It kind ​of

reinforces the idea that we are past peak inflation ‌concerns,"

said Michael Metcalfe, head of market strategy at State Street

Markets.

"This is painting a picture of a continued improving

inflation outlook, which will allow for rates to fall later in

the year."

At ​10:22 a.m. ET, the Dow Jones Industrial Average

fell 67.89 ​points, or 0.14%, ‌to 49,384.09, the S&P 500

dropped 3.79 points, or 0.06%, to 6,828.97, and the Nasdaq

Composite lost 51.78 points, or 0.23%, to 22,545.37.

With earnings season more than halfway through, AI capex

outlays emerged as ⁠a dominant theme for the "Magnificent Seven"

companies, whose cumulative investments are projected to reach

about $650 billion. Investors are ⁠now demanding real payoffs as

they continue to punish sectors they fear could be squeezed by

growing competition.

"You're discounting a lot of earnings streams that have

to come to fruition. Investors are questioning whether those are

going to actually occur and we're not trading at cheap

valuations," said Brent Schutte, chief investment officer,

Northwestern Mutual Wealth Management.

"That just makes the bar ⁠a bit ‌higher for investors to

continue to push the market higher."

Information technology stocks declined, with ‌Nvidia

and Apple ( AAPL ) down 2% and 0.8%, respectively,

dragging the S&P 500 and the Nasdaq. Losses in big banks such as

Goldman ⁠Sachs and JPMorgan Chase ( JPM ) weighed on the

Dow.

Healthcare shares supported markets on Friday, with Eli

Lilly ( LLY ) and UnitedHealth ( UNH ) adding 2.2% and 0.7%,

respectively.

Applied Materials ( AMAT ) shares jumped 10% after the

chipmaking-equipment firm forecast second-quarter revenue and

profit above Wall Street expectations.

Networking equipment provider Arista Networks ( ANET )

gained 5.3% after forecasting annual revenue above expectations.

U.S. President Donald Trump plans to scale back some tariffs

on steel and aluminum goods, the Financial Times reported,

citing people familiar with the matter.

Nucor ( NUE ) slipped 2.9%, Cleveland-Cliffs ( CLF ) fell

3.6% and Steel Dynamics ( STLD ) lost 3.7% after the news.

Aluminum ​producers Alcoa ( AA ) and Century Aluminum ( CENX )

declined 2% and 6.4%, respectively.

Advancing issues outnumbered decliners by a 1.67-to-1 ratio

on the NYSE, and by a 1.78-to-1 ratio on the Nasdaq.

The S&P 500 posted 21 new 52-week highs and three new

lows, ​while the Nasdaq Composite recorded 20 new highs ‌and 86

new lows.