Stocks rebounded today on cooler November consumer price data. The S&P 500 (^GSPC +0.79%) rose 0.79% to 6,774.76, the Nasdaq Composite (^IXIC +1.38%) climbed 1.38% to 23,006.36 on tech strength, and the Dow Jones Industrial Average (DJINDEX: ^DJI) edged up 0.14% to 47,951.85.
Market movers
Micron Technology (MU +10.21%) rallied after stronger-than-expected earnings and an upbeat AI-memory outlook. This also lifted chipmakers and other growth names.
Recent pressure on large-cap AI leaders such as Nvidia (NVDA +1.91%), Oracle(ORCL +0.82%), and Advanced Micro Devices (AMD +1.47%) eased as inflation worries receded.
What this means for investors
Markets finished in the green today on the back of cooling November inflation. The Consumer Price Index (CPI) rose 2.7%, lower than the expected 3.1%. This eased fears that stubborn price increases were here to stay, and boosted odds of Fed rate cuts in early 2026.
The CPI data, combined with Micron’s upbeat results, calmed recent jitters over AI and tech stocks. Bubble fears have not gone away, but the Nasdaq has erased some of this week's losses and is now up 2.56% in the past month.
Oil edged upwards slightly as markets reacted to geopolitical risks in Venezuela and Russia. Prices have hit multi-year lows recently over rising concerns about a so-called "super glut." While supply from major oil projects and record U.S. shale production has increased, demand is falling.
Today's upturn is good news for investors hoping for a seasonal Santa rally. Upcoming earnings reports will indicate whether it's sustainable.
