Stock indexes closed higher on Thursday, with S&P 500 up by +0.79%, Dow Jones up by +0.14%, and Nasdaq 100 up by +1.51%. Micron Technology led chip stocks higher with a +10% gain. Weekly jobless claims fell, and US inflation was lower than expected, boosting market sentiment and lowering bond yields. US Nov CPI rose +2.7%, weaker than expected.

The focus shifts to US economic news, with Nov existing home sales expected to rise +1.2%. The market anticipates a 27% chance of a Fed rate cut in January. Overseas markets closed mixed, with Euro Stoxx 50 up +1.06% and Nikkei down -1.03%. T-notes closed up +8 ticks, with yields falling to 4.114%.

The steepening yield curve is bearish for T-notes. European bond yields were mixed, with German bund yield down to 2.850%. ECB kept rates unchanged and raised 2025 Eurozone GDP forecast. BOE cut rates by -25 bp and sees further declines. Swaps predict a 1% chance of ECB rate cut in February.

Micron Technology surged over +10%, while Sandisk, Western Digital, and others closed up more than +6%. Tech stocks like Tesla and Amazon also rallied. Trump Media & Technology Group jumped over +44% on merger news. Rivian Automotive, GE Vernova, and others also saw gains.

Insmed dropped over -15% after a failed trial, while Birkenstock and FactSet fell due to weak forecasts. Cinemark and Lennar were down after downgrades. Maplebear Inc. slipped after FTC probe news. Earnings reports from Carnival Corp, Conagra Brands, and others are expected on 12/19/2025.

Read more at Nasdaq: Stocks Settle Higher on Upbeat Tech Outlook and Cooling Inflation