The Economic Times·2025-12-18 15:39Market Overview - U.S. stocks experienced a significant rebound, driven by softer-than-expected inflation data and strong corporate earnings, particularly from Micron Technology [1][2][17] - Major indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, posted solid gains, with the Nasdaq leading the advance [4][17] Inflation Data - The November Consumer Price Index (CPI) reported annual headline inflation at 2.7%, significantly below the Dow Jones estimate of 3.1%, while core CPI was at 2.6%, compared to an expected 3% [6][15] - The report was delayed due to a government shutdown and lacked month-over-month comparisons, but markets reacted positively to the lower annual inflation readings [7][17] Corporate Earnings - Micron Technology's shares surged approximately 15% after the company exceeded Wall Street estimates for revenue and earnings in its fiscal first quarter, citing improving demand for AI-related memory chips [11][16] - The positive performance of Micron helped stabilize the broader semiconductor sector, which had faced recent declines [12][16] Sector Performance - Despite recent volatility, the technology sector remains one of the strongest performers of the year, projected to end 2025 with gains of around 20% [5][17] - Other major chipmakers, including Broadcom, Nvidia, and AMD, faced pressure due to concerns over rising capital costs tied to large-scale data center investments, but long-term optimism remains intact [13][14] Labor Market Signals - Initial jobless claims came in below expectations, reinforcing the view that the U.S. economy remains stable despite higher interest rates [8][17]