Overview
The Consumer Price Index (CPI) for November and core CPI both came in below market expectations, marking the lowest levels since early 2021. This decline in inflation has fueled expectations that the Federal Reserve will aggressively cut rates next year. The strong earnings report from Micron added to the market's upward momentum, as their outlook confirmed robust demand related to AI technologies.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
- November CPI Release: The data undercut expectations and had a positive impact on the market.
- Micron's Earnings: The company's solid performance reinforced positive prospects due to sustained AI demand.
- S&P 500 Index: Gained nearly 8%, ending the recent streak of declining sessions.
- Federal Reserve Interest Rate Moves: While hopes for a January rate cut are rising, nothing is set in stone.
Tomorrow's Economic Indicators
| Announcement Time | Content |
|---|---|
| Noon | Japan's Interest Rate Decision |
| Midnight | U.S. November Existing Home Sales |
| Midnight | U.S. November Michigan Consumer Sentiment Index |
| Midnight | U.S. December Michigan Inflation Expectations |
| 3 PM | U.S. Baker Hughes Rig Count |
General Opinion
The U.S. stock market is currently buoyed by positive momentum, presenting a promising outlook. However, risks remain due to valuation pressures and the concentration of investments in a few leading stocks. The market's future direction heavily depends on AI-related companies proving that the current trends have sustainable growth potential. Attention is focused on the Federal Reserve's potential rate cuts and their impact. Amid this optimism, fluctuations in economic indicators will play a significant role in shaping market expectations.
