Market Overview - Early signs in Asian trading indicate potential stabilization in markets after recent volatility, with US equity-index futures showing slight increases [1] - The MSCI Asia Pacific Index experienced its first drop in six sessions, influenced by concerns over AI's impact on various sectors, particularly technology stocks [12] - Despite bearish trends, Applied Materials Inc. saw a 10% surge in late trading due to a positive sales forecast driven by demand for AI and memory semiconductors [9] Treasury and Inflation - The cross-asset weakness led to a rally in US Treasuries, with the two-year yield decreasing by five basis points and the 10-year yield down seven basis points to 4.1% [2][13] - Upcoming US inflation data is expected to show a year-over-year increase of 2.5% for the core consumer price index, which excludes food and energy [7][13] - Market sentiment appears complacent regarding US inflation, with expectations for inflation likely to be revised slightly higher, as noted by Citigroup Inc. [8][13] AI and Technology Sector - The volatility in US trading reflects the rising stakes associated with the AI boom, affecting various sectors and asset classes beyond technology [3][13] - Concerns have been raised about the correlation of Asian markets to global trends, particularly in relation to AI's impact on stock performance [6][13] - OpenAI has alerted US lawmakers about competitive threats from its Chinese rival DeepSeek, which is reportedly using sophisticated methods to extract results from US AI models [10] Trade Developments - The US and Taiwan have finalized an agreement aimed at lowering tariffs and enhancing market access for American products in Asia, alongside directing billions into US energy and technology projects [11][13]

Inflation and Economic Indicators - The CPI figures for November showed a rise of 2.7%, lower than the expected 3.1% increase, indicating a positive surprise in inflation data [1] - Shelter prices increased by 0.2% from September to November, slower than the 0.3% average increase in 2025 [2] Darden Restaurants, Inc. (NYSE:DRI) - Darden reported $3.1 billion in revenue and $2.08 in adjusted earnings per share, beating revenue estimates but missing earnings estimates [8] - BTIG maintained a Buy rating with a price target of $225, while Stephens cut its price target from $215 to $205, citing weaker trends at Olive Garden [8] - The CFO noted that high beef prices were impacting margins, but stable sales at LongHorn Steakhouse were highlighted [8] Micron Technology, Inc. (NASDAQ:MU) - Micron reported $13.64 billion in revenue and $4.78 in adjusted earnings per share, exceeding analyst estimates [9] - The results prompted Rosenblatt to raise the price target from $300 to $500, maintaining a Buy rating, driven by memory price strength and lower costs [9] - Cramer emphasized the strong demand for memory chips, particularly in AI, with Micron only able to meet 50% to 66% of customer demand [9][10]