Economic Indicators - November's inflation rate was reported at 2.7%, lower than the expected 3.1% [1] - The "Core" CPI, excluding food and energy prices, increased by only 2.6%, also below the predicted 3% [1] Market Reactions - Investors reacted positively to the inflation report, with the Vanguard S&P 500 ETF (NYSEMKT: VOO) rising by 0.8% in premarket trading [2] - A cooler inflation report increases the likelihood of an interest rate cut by the Federal Reserve in January, which is generally favorable for the stock market [4] Company Earnings - Micron (Nasdaq: MU) reported earnings of $4.78 per share for fiscal Q1 2026, exceeding expectations by 84 cents, with sales of $13.6 billion [5] - Micron's guidance for Q2 suggests earnings could reach $8.42 per share, significantly above the consensus forecast of $4.49, with projected sales of $18.7 billion [5] - Cintas (Nasdaq: CTAS) reported earnings of $1.21 per share for fiscal Q2, slightly beating revenue projections with sales of $2.8 billion [6] - Cintas forecasts full-year profit between $4.81 and $4.88 per share, although sales may be slightly lower than expected at around $11.1 billion [6]

Economic Overview - US stocks experienced a significant rise following a cooler-than-expected inflation report, with consumer prices increasing by 2.7% year-over-year, lower than the anticipated 3.1% [1][5] - The latest Consumer Price Index (CPI) data is viewed as a positive development for the market, which has been under pressure due to high valuations and concerns regarding the AI sector [4] Tech Sector Performance - The tech sector rebounded after a period of weakness, with chip stocks, particularly Micron Technology, seeing a notable increase of up to 14% following strong earnings and robust guidance [2][8] - Micron reported $13.6 billion in revenue, surpassing Wall Street's expectation of $12.8 billion, and projected $18.7 billion in revenue for the current quarter, exceeding the $14.2 billion forecast by analysts [7][8] Federal Reserve Outlook - The combination of cooler inflation and a weaker job market has increased the likelihood of the Federal Reserve continuing its rate-cutting cycle, with expectations for a potential 25 basis point cut by March [5][6] - Analysts suggest that the latest CPI reading indicates the Fed may be ahead of its inflation targets for the upcoming year, supporting a narrative that job market risks are rising faster than inflation risks [6][7]

Market Overview - March 10-year T-notes are up by +9 ticks, with the yield down -3.7 basis points to 4.116% [1] - T-notes reached a 1.5-week high, while the 10-year T-note yield fell to a 1.5-week low of 4.10% [1] - Mixed performance in overseas stock markets, with Euro Stoxx 50 up +0.57% and Japan's Nikkei down -1.03% [1] Economic Indicators - The markets are pricing in a 27% chance of a 25 basis point cut in the fed funds target range at the next FOMC meeting [2] - US November existing home sales are expected to rise +1.2% month-over-month to 4.15 million [2] - The University of Michigan's December consumer sentiment index is anticipated to be revised upward by +0.2 to 53.5 [2] Inflation and Business Outlook - The US December Philadelphia Fed business outlook survey unexpectedly fell -8.5 to -10.2, contrary to expectations of an increase [3] - US November CPI rose +2.7% year-over-year, below the expected +3.1% [3] - November core CPI increased by +2.6% year-over-year, also weaker than the expected +3.0% and marking the slowest pace in 4.5 years [3] Stock Market Movements - Stock indexes are rising, led by a rebound in chip stocks, with Micron Technology up more than +14% after a positive forecast [5] - The S&P 500 Index is up by +0.79%, the Dow Jones by +0.59%, and the Nasdaq 100 by +1.43% [5] - T-notes are higher due to favorable US economic reports, including lower-than-expected CPI and a contraction in the Philadelphia Fed survey [5] European Market Developments - European government bond yields are increasing, with the 10-year German bund yield rising to an 8-month high of 2.897% [7] - The ECB maintained the deposit facility rate at 2.00% and raised its 2025 Eurozone GDP forecast to 1.4% [7] - ECB President Lagarde noted the resilience of the Eurozone economy amid uncertain inflation outlook [8] Company-Specific News - Micron Technology reported Q1 revenue of $13.64 billion, exceeding consensus estimates, and forecasted Q2 revenue between $18.3 billion and $19.1 billion [9] - Lululemon Athletica is up more than +6% following news of Elliot Investment Management acquiring a stake over $1 billion [11] - Merck & Co is up more than +1% after an upgrade from BMO Capital Markets with a price target of $130 [12] Declines in Specific Stocks - Insmed is down more than -14% after a failed mid-stage trial of its therapy [13] - Birkenstock Holding Plc is down more than -3% after forecasting 2026 adjusted EBITDA below consensus [13] - FactSet Research Systems is down more than -2% after forecasting full-year revenue below consensus [14]

Stocks rallied at the open, bouncing after a sharp selloff Wednesday, as a cooler-than-expected inflation report lifted hopes that the Federal Reserve would cut interest rates further. An optimistic outlook in the tech sector also lifted sentiment https://t.co/bbWQanC5KA ...

US stocks rose sharply on Thursday as investors digested a lighter-than-expected inflation report, easing concerns about persistent price pressures and helping spark a rebound in technology shares after a bruising run. The Dow Jones Industrial Average traded 339 points higher, or 0.8%, while the S&P 500 advanced 1.1%. ...

The governing council today decided to keep the three key ECB interest rates unchanged. Our updated assessment reconfirms that inflation should stabilize at our 2% target in the medium-term. The new Euro system staff projections show headline inflation averaging 2.1% in 25, 1.9% in 26, 1.8% 8% in 28, sorry, 1.8% in 27 and 2% in 28. For inflation, excluding energy and food, staff project an average of 2.4% in 25, 2.2% in 26, 1.9% in 27, and 2% in 28.Inflation has been revised up for 2026, mainly because staf ...

Inflation Rate - Truflation reports the inflation rate at 252% this morning [1]

Here are key takeaways from the US consumer price index report for November https://t.co/1nHnKQSroR ...

Every economist that promised high inflation, empty shelves, and the next Great Depression should apologize.They destroyed an immense amount of investor capital by scaring people into believing something that was obviously wrong from the start. ...

Strong earnings from a key AI stock and a surprisingly cool inflation reading put the stock market back into rally mode.The Dow Jones Industrial Average rose 421 points, or 0.9%. The S&P 500 rose 1.1%. The Nasdaq Composite rallied 1.5%.The yield on the 2-year Treasury note was down to 3.46%. The 10-year yield was down to 4.12%. ...