Zhong Guo Ji Jin Bao·2025-12-18 16:29Market Overview - The U.S. stock market experienced a significant surge, with major indices such as the Dow Jones rising over 400 points, the Nasdaq increasing by nearly 2%, and the S&P 500 gaining over 1% [3] - Chinese assets also saw a positive response, with the China concept stock index rising by 1.5% [4] Technology Sector Performance - The technology sector witnessed a collective rally, driven by Micron Technology's stock, which surged over 10%. This was attributed to a robust earnings outlook and an increase in performance expectations for key products [5] - Analysts noted that the AI boom is causing a shortage of storage chips, which may lead to higher prices for electronic products [5] Inflation Data Impact - The latest U.S. inflation data showed a surprising decrease, with the core Consumer Price Index (CPI) rising by 2.6% year-on-year in November, down from 3% two months prior. The overall CPI increased by 2.7% year-on-year [9] - This decline in inflation has heightened expectations for the Federal Reserve to consider interest rate cuts in 2026, with analysts suggesting a higher likelihood of cuts occurring in the first half of that year [12] Analyst Insights - Analysts have indicated that the November inflation data provides the Federal Reserve with more "ammunition" to adopt a dovish stance in upcoming meetings, particularly in January [12] - Despite the positive outlook, some analysts caution against overinterpreting the data due to potential distortions caused by recent government shutdowns and promotional events affecting consumer spending [15]