FX.co ★ US Stocks Rise on Slower Inflation

On Thursday, U.S. stock markets experienced an uptick, with the S&P 500 increasing by 0.8%, the Nasdaq rising by 1.4%, and the Dow Jones gaining approximately 66 points. This positive movement followed new data indicating an unexpected decline in the inflation rate. Annual inflation in the U.S. fell to 2.7% in November, marking the lowest rate since July and falling short of market predictions of 3.1%. Additionally, the core inflation gauge dropped to 2.6%, the lowest since March 2021. Although the figures are somewhat distorted due to the unavailability of October's data following the government shutdown, a consistent reduction in price pressures may create an opportunity for the Federal Reserve to implement further rate cuts next year. The sectors of consumer discretionary and information technology were at the forefront of the gains, with increases of approximately 2% and over 1%, respectively. Notably, Micron Technology's shares surged around 10% after the company reported fiscal first-quarter earnings and revenue exceeding expectations, along with a robust current outlook. Meanwhile, the financial, consumer staples, energy, and real estate sectors underperformed.