S&P 500 Rises on Easing US Inflation Data, Upbeat Tech Outlook
Summarize this article with:
Traders work on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, US, on Monday, Dec. 15, 2025. The last full trading week of 2025 started with stocks falling and bonds rising as Wall Street geared up for key economic data that will help shape the Federal Reserve rate outlook. Photographer: Michael Nagle/Bloomberg Photo by Michael Nagle /BloombergArticle content(Bloomberg) — Stocks advanced on Thursday as a cooler-than-expected inflation report lifted hopes that the Federal Reserve would cut interest rates further. An optimistic outlook in the tech sector also boosted sentiment. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe S&P 500 Index pared gains to 1% as of 12:43 p.m. in New York Thursday, but is still on pace to snap a four-day losing streak. Consumer discretionary was the top-performing of 11 sectors in the market, while energy fell along with crude oil prices.
Micron Technology Inc. was the top-performing stock in the benchmark after providing an upbeat forecast, citing the ability to charge more for products given rising demand and supply shortages.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe tech-heavy Nasdaq 100 Index was up 1.8%, rebounding after its biggest daily drop in a month, while the blue-chip Dow Jones Industrial Average, which briefly turned red, was up 0.4%.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“The earnings engine in the US is on,” said Emily Roland, co-chief investment strategist at Manulife John Hancock Investments, in a Bloomberg TV interview. She’s looking for earnings growth outside of tech for 2026, after being overweight the sector for much of 2025. Article content“We still like tech, but there’s no doubt about it, it’s expensive,” she added.Article contentThe lofty valuations of AI stocks continue to concern investors. About 57% of participants in a Deutsche Bank survey said a potential plunge in AI valuations is the biggest risk to market stability in 2026. Separately, JPMorgan Chase & Co. warned of “extreme crowding” in speculative stocks, including a handful of AI-linked names.Article contentThursday’s market move follows a cooler-than-expected inflation report. The core consumer price index rose 2.6% in November, according to the Bureau of Labor Statistics — well below expectations for a 3.1% gain. Traders also focused on jobless claims data, which showed continuing claims rising to 1.9 million. Article contentArticle content“Today’s CPI print gives the market what it needed: confirmation that disinflation is durable and policy relief is coming,” said Gina Bolvin, president of Bolvin Wealth Management Group. “For investors, this is the time to lean into growth with guardrails — be selective, be strategic, and stay ahead of the curve.”Article contentUS President Donald Trump said in a televised address Wednesday night that he would soon pick a new Fed chair that would bring rates down significantly further as he sought to calm concerns about the high cost of living.Article content“A Santa Rally could still be in the cards,” said David Russell, global head of market strategy at TradeStation. Article contentStill ahead, FedEx Corp. and Nike Inc. are set to report earnings after the closing bell Thursday. Traders will also parse existing home sales data and a University of Michigan survey of inflation expectations, which are expected Friday morning, for additional clues on the central bank’s rate path.Article contentTrending Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Trump official signals support for trade deal with Canada, Mexico Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Trump official signals support for trade deal with Canada, Mexico Economy