Stock Market Rises as Inflation Eases and Micron Reports Strong Earnings

Dec 19, 2025, 2:17 AM

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US stocks rebounded on Thursday as investors digested easing inflation pressures from the latest reading on consumer prices that could help set expectations for the path of interest rates.

The tech-heavy Nasdaq Composite (^IXIC) led the way up with a gain of 1.4%, pushed north by a strong earnings report from Micron Technology (MU), which saw its shares rise 10%. This surge in tech stocks followed a previous session marked by concerns over artificial intelligence trade, which had negatively impacted the sector.

Shares in the benchmark S&P 500 (^GSPC) and the blue-chip-heavy Dow Jones Industrial Average (^DJI) also rose, with increases of approximately 0.8% and 0.2%, respectively.

A key driver for the market's positive movement was a cooler-than-expected Consumer Price Index (CPI) report, which indicated that inflation rose 2.7% in November compared to the previous year, and 2.6% on a "core" basis. Both figures were below economist estimates of 3% and 3.1%, respectively.

Despite the encouraging inflation data, economists have cautioned that the reliability of these figures may be compromised due to the ongoing US government shutdown. Concurrently, the Federal Reserve appears to be more focused on signs of weakness in the labor market rather than inflationary pressures. On Wednesday, Fed governor Chris Waller indicated support for potential rate cuts prior to the CPI release.

In terms of employment, the Department of Labor reported initial jobless claims of 224,000 for the week ending December 13, marking a decrease of 13,000 from the previous week's figures. However, this data has also been subject to significant volatility due to the federal shutdown.

As Wall Street watches for further signs of tech sector challenges, Oracle (ORCL) faced a setback after losing crucial backing for a $10 billion data center project, which led to a decline in its stock along with other major players like Nvidia (NVDA) and Broadcom (AVGO). In contrast, Micron's earnings report provided a more optimistic outlook for artificial intelligence demand, forecasting next quarter's adjusted profit to be nearly double what analysts had anticipated.

In other noteworthy news, Trump Media & Technology Group (DJT, DJTWW) announced a $6 billion merger deal with Tae Technologies, a fusion power company backed by Alphabet (GOOG, GOOGL) and Chevron (CVX). Following this announcement, shares in Trump Media surged, reflecting investor confidence in the potential for AI-driven energy demand.

Overall, the stock market's positive response to easing inflation and strong corporate earnings signals a cautious optimism among investors as they navigate the complexities of the current economic landscape.

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