{"id":641368,"date":"2025-12-19T02:22:20","date_gmt":"2025-12-19T02:22:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/641368\/"},"modified":"2025-12-19T02:22:20","modified_gmt":"2025-12-19T02:22:20","slug":"dow-sp-500-nasdaq-jump-after-cooler-cpi-inflation-reading-as-ai-trade-reignites","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/641368\/","title":{"rendered":"Dow, S&P 500, Nasdaq jump after cooler CPI inflation reading as AI trade reignites"},"content":{"rendered":"\n

US stocks rebounded on Thursday as investors digested easing inflation pressures from the latest reading on consumer prices<\/a> that could help set expectations for the path of interest rates.<\/p>\n

The tech-heavy Nasdaq Composite (^IXIC<\/a>) led the way up with a gain of 1.4%, pushed north by a strong earnings report from Micron (MU<\/a>), which saw its shares rise 10%. The tech gain came after AI trade worries had spurred another bruising session for tech<\/a> on Wednesday.<\/p>\n

Shares in the benchmark S&P 500 (^GSPC<\/a>) and the blue chip-heavy Dow Jones Industrial Average (^DJI<\/a>) rose around 0.8% and 0.2%, respectively.<\/p>\n

Headlining the morning was a cooler-than-expected Consumer Price Index (CPI) report, which showed inflation rose 2.7% in November over the prior year and 2.6% on a “core” basis \u2014 both figures coming in below economist estimates of 3% and 3.1%, respectively.<\/p>\n

As with Tuesday’s monthly jobs report<\/a>, economists have noted that the inflation data may be less reliable than normal thanks to the US government shutdown<\/a>. At the same time, the Federal Reserve seems more attentive to cracks in the labor market than to price pressures. On Wednesday, Fed governor Chris Waller signaled support for rate cuts<\/a> before the release of the CPI update.<\/p>\n

Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments<\/a><\/p>\n

On the jobs front, the Department of Labor reported initial jobless claims of 224,000 for the week ended Dec. 13, down 13,000 from the previous week’s figure. But that data has also been subject to significant volatility<\/a> in the wake of the federal shutdown.<\/p>\n

Meanwhile, Wall Street is keeping watch for more signs of tech malaise after Oracle<\/a> (ORCL<\/a>) lost key backing<\/a> for a $10 billion data center project, sending its stock tumbling on Wednesday along with heavyweight names like Nvidia (NVDA<\/a>) and Broadcom (AVGO<\/a>). Micron’s earnings late Wednesday painted a rosier picture for AI demand, as the Nvidia (NVDA<\/a>) supplier forecast next quarter’s adjusted profit to be nearly double what analysts expected<\/a>.<\/p>\n

Elsewhere, Trump Media & Technology Group (DJT<\/a>, DJTWW<\/a>) agreed to a $6 billion deal to merge<\/a> with Tae Technologies, a fusion power group backed by Alphabet (GOOG<\/a>, GOOGL<\/a>) and Chevron (CVX<\/a>). Shares in Trump Media, the home of the Truth Social platform, surged after the announcement, seen as a bet on AI-fueled energy demand.<\/p>\n

LIVE COVERAGE IS OVER 21 updates <\/p>\n