The Economic Times·2025-12-18 15:54Market Overview - The tech-heavy Nasdaq rose nearly 1.9%, driven by a rally in chipmakers and select mega-cap names [1][15] - The S&P 500 climbed more than 1.3%, while the Dow Jones Industrial Average surged over 400 points [1][15] - Markets reacted positively to a cooler-than-expected Consumer Price Index (CPI) report, indicating a slowdown in inflation [1][15] Inflation and Economic Indicators - Annual CPI inflation came in at 2.7%, while core inflation eased to 2.6%, both below economist forecasts [2][6] - The data reinforced expectations that the Federal Reserve may pivot toward interest rate cuts, especially as signs of weakness appear in the U.S. labor market [2][6] Earnings Reports - Strong earnings from Micron Technology helped revive confidence in AI-driven tech demand, with Micron forecasting next-quarter profits nearly double analyst expectations [8][13] - Micron shares surged more than 10%, positively impacting semiconductor peers like Nvidia, which rose nearly 2% [8][12] Labor Market Data - Initial jobless claims fell to 224,000 for the week ended Dec. 13, down 13,000 from the prior week, indicating a mixed but cooling jobs picture [10][15] - Continuing claims edged higher, but markets interpreted the data as evidence that the Fed can ease policy without reigniting inflation [10][15] Notable Stock Movements - Trump Media & Technology Group shares jumped more than 30% after announcing a $6 billion merger agreement with Tae Technologies, viewed as a long-term bet on energy demand tied to AI growth [12][15] - Other notable gainers included Sable Offshore Corp. (SOC) up 73.67%, Athira Pharma (ATHA) up 82.59%, and Plug Power (PLUG) up 8.84% [16]