18.12.202514:37:54UTC+00US Stocks Surge on Slower Inflation

U.S. stock markets experienced significant gains on Thursday, with notable increases across major indices: the S&P 500 surged by 1%, the Nasdaq climbed 1.4%, and the Dow Jones rose by approximately 340 points. This positive movement followed the release of new data indicating an unexpected decline in the inflation rate for November. The annual inflation rate in the U.S. dropped to 2.7%, marking the lowest level since July. This is a decrease from 3% in September and below market expectations of 3.1%. Additionally, the core inflation measure fell to 2.6%, the lowest since March 2021. Despite the potential for data noise due to the absence of October statistics, a consistent easing of pricing pressures may set the stage for further reductions in Federal Reserve interest rates in the upcoming year. Among sectors, consumer discretionary, technology, communication services, and industrials outperformed, while the energy sector lagged behind. Shares of Micron Technology saw a substantial increase of about 16% following the company’s announcement of better-than-expected earnings and revenue for the fiscal first quarter, along with a positive forecast for the current period.