Markets cheer surprise gift of cooler CPI amid renewed AI optimism to finish higher
The S&P 500, Nasdaq 100, and Russell 2000 surged on Thursday — perhaps we’ll have a Santa rally after all!
After a string of dismal trading days, US stocks soared on a sack full of good news that reversed this week’s downward trend and made visions of a Santa Claus rally dance in traders’ heads.
Micron’s earnings report after the bell Wednesday absolutely smashed all expectations, lifting a trove of tech stocks with it as the AI trade lit back up. OpenAI reportedly getting its hands on more money also boosted AI optimism. All of the Magnificent 7 rose as well as Bloom Energy, Cipher Digital, POET Technologies, CoreWeave, IREN, and Nebius.
Investors also cheered this morning’s inflation data, which came in well below economists’ expectations, with annual core CPI inflation falling to its lowest level since March 2021, offering fresh justification for the interest rate cuts already delivered by the Federal Reserve and prompting traders to bet on the prospect of more to come.
The S&P 500, Nasdaq 100, and Russell 2000 all celebrated cheery gains.
Stocks that moved higher:
Trump Media surged after announcing it’s merging with fusion energy company TAE Technologies.
Rivian climbed after it rolled out a “universal hands-free” update and scored an upgrade from Baird.
Utilities with a footprint in the country’s largest power grid, such as Talen Energy, Constellation Energy, and Vistra, spiked after prices set in a key auction hit a record high.
Stocks that moved lower:
President Trump signed an executive order directing agencies to reschedule marijuana as a less dangerous drug, which sank shares of Canadian cannabis companies like Tilray, Canopy Growth, Cronos Group, and SNDL Inc.. The AdvisorShares Pure US Cannabis ETF, the benchmark ETF for publicly traded US cannabis companies, plunged as investors treated it as a “sell the news” event.
Used car retailer CarMax sank following the company’s third-quarter earnings report, which showed its used car sales had declined.
Instacart slumped following a report that the FTC is probing its AI pricing tool.
Coinbase rose after announcing it was entering into prediction markets and stock trading, but lost those gains by the close.
