2025-12-18 21:18:00
Major US indices delivered a powerful performance on Thursday, snapping a four-session losing streak. Investors were fueled by a “double jolt” of optimism: a cooling inflation report and robust earnings from the semiconductor sector. The lower-than-expected CPI data has successfully recalibrated market expectations for the Federal Reserve’s interest rate path heading into early 2026.
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Inflation Cooled: The US CPI report showed inflation slowing to 2.7% year-over-year, coming in lower than the 3.1% forecast and marking a significant multi-month low.
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Tech Power: Strong earnings from Micron Technology relieved pressure on the AI and chip sectors, helping the Nasdaq outperform the broader market.
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Rate Cut Hopes: The “inflation miss” has boosted confidence that the Federal Reserve may implement more aggressive rate cuts in the coming year.
Major U.S. Indices Performance
Growth-oriented indices led the charge today, with the Nasdaq Composite reclaiming the psychological 23,000 level.
| Index | Closing Price | Points Change | % Change |
| Nasdaq Composite (IXIC) | 23,006.36 | +313.04 | +1.38% |
| S&P 500 (SPX) | 6,774.76 | +53.33 | +0.79% |
| Russell 2000 (RUT) | 2,507.86 | +15.57 | +0.62% |
| Dow Jones Industrial (DJI) | 47,951.85 | +65.88 | +0.14% |
Sector Analysis: Tech and Telecom Lead
The market advance was largely lopsided toward high-beta and growth sectors as capital rotated out of defensive holdings.
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Growth Leaders: Information Technology (+1.41%) and Telecommunication Services (+1.48%) were the clear winners, benefiting from the rebound in AI-related stocks.
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Yield Sensitivity: Utilities gained +1.08% as Treasury yields softened following the CPI data.
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Defensive Laggards: Consumer Staples (-0.68%) and Real Estate (-0.62%) faced selling pressure as investors moved back into “risk-on” assets.
Global and Commodity Markets
The “risk-on” sentiment extended to European equity markets, while commodities showed mixed results.
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European Markets: Strong gains were seen in Spain’s IBEX 35 (+1.15%) and Germany’s DAX (+1.00%) as global inflation fears eased.
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Commodities: Gold settled slightly lower at $4,332.78 (-0.14%) as the demand for safety waned. Silver fill $0.84 or -1.28% to $65.35 the
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Cryptocurrency: Bitcoin (BTCUSD) tracked lower alongside some commodities, finishing the session at $85,070 (-1.33%).
