Stock indexes surged today, with the S&P 500 up by +1.28%, the Dow Jones by +0.82%, and the Nasdaq 100 by +1.91%. Micron Technology led chip stocks higher with a +11% gain after a positive forecast. Weekly jobless claims fell, US inflation slowed, and bond yields dropped, boosting Fed rate cut expectations.

US economic focus this week includes Nov home sales and consumer sentiment data. The FOMC meeting in January has a 27% chance of a 25 bp rate cut. Overseas markets are mixed, with European bonds fluctuating. ECB kept rates steady, revised GDP forecast. BOE cut rates to 3.75%, signaling future cuts.

T-notes rose following dovish US economic reports and falling inflation expectations. The steepening yield curve pressured T-note prices. European bond yields were mixed, with the German bund yield falling. ECB’s Lagarde praised Eurozone economy resilience, while BOE hinted at more rate cuts.

Micron Technology, Sandisk, and Western Digital surged over 9% after strong revenue reports. The Magnificent Seven tech stocks rose, with Tesla and Amazon leading gains. Cryptocurrency-exposed stocks climbed with Bitcoin. Trump Media & Technology Group surged +35% with a merger announcement.

Lululemon Athletica, GE Vernova, Rivian Automotive, and Cytokinetics also posted gains. Sherwin-Williams Co. rose, while Insmed, Birkenstock Holding Plc, and FactSet Research Systems fell. Cinemark Holdings dropped after a downgrade. Maplebear Inc. and Lennar also saw declines. Earnings reports from various companies were released on 12/18/2025.

Read more at Nasdaq: Stocks Rally as Chip Makers Soar and US Price Pressures Ease