Pinterest Shares Fall 17% as Small Caps Rally on Cooling Inflation
Pinterest shares plunged 17.1% after small-cap stocks outperformed during a broader market rebound. January’s CPI slowed to 2.4% from 2.7%, the weakest since May 2025, while the Russell 2000 climbed 1.8% and gold and silver advanced over 2% and 4%, respectively.
1. Inflation Cools to 2.4% in January
January’s consumer price index eased to 2.4% year over year, down from 2.7% the previous month, marking the slowest annual inflation rate since May 2025; core CPI also cooled to 2.5%, the weakest reading since March 2021.
2. Small Caps Outperform, Commodity Prices Rise
The Russell 2000 index surged 1.8%, outperforming large-cap peers, while gold rose over 2% to trade above $5,000 and silver jumped nearly 4% to exceed $77 per ounce; Bitcoin gained 4.6%, poised to break a multi-day losing streak.
3. Pinterest Becomes One of Russell 1000’s Top Losers
Pinterest shares tumbled 17.1%, ranking among the largest decliners in the Russell 1000 on Friday despite no company-specific catalysts, as investors rotated into cyclicals following the softer inflation data.