Market Summary
Stocks rallied after a softer-than-expected CPI print: S&P 500 and Nasdaq pushed higher while the Dow lagged. Volatility eased intraday as chip names led gains — Micron the standout — and Treasury yields moved lower. Key catalysts: inflation data, Micron’s blowout quarter, and renewed flows into bonds and munis.
The delayed November CPI report surprised markets with a sharp slowdown, prompting an immediate move in Treasuries. Investors are parsing whether the data — possibly distorted by shutdown effects — alters the Fed’s tightening path.
Figure of the Day
2.7% – U.S. annual CPI in November, the unexpected slowdown that reshaped market moves today.
Micron’s blowout quarter and bullish guidance reignited the AI memory trade, sending chip stocks higher. The results forced analysts to re-rate the sector and lifted broader risk appetite.
Trump Media announced an unexpected all-stock tie-up with a nuclear fusion developer, sending the company’s shares sharply higher. The deal links a politically connected media firm to speculative energy ambitions tied to AI power needs.
Bullish
Medline Surges After Blockbuster IPO
Medline’s public debut outperformed expectations, sending shares sharply higher and underscoring ongoing investor appetite for scaled healthcare plays after a strong 2025 IPO market.
More on thedailyupside.com
The rapid expansion of data centers is colliding with strained local power grids and political scrutiny. Lawmakers are probing potential conflicts of interest as developers and financiers push large-scale projects.
The Bank of England cut its key rate in a narrow vote as inflation cooled, a move investors see as the start of a gentler phase for policy. Officials remain cautious that further cuts depend on durable disinflation.
Bearish
Insmed Stock Collapses After Study Reversal
Insmed plunged after the company scrapped a key trial, reversing earlier gains and highlighting execution risks in small-cap biotech pipelines as investors retreat from speculative bets.
More on benzinga.com
President Trump signed an executive order to reclassify marijuana, triggering a sharp market response in cannabis stocks. The move signals swift regulatory change with potential implications for research, banking and tax treatment.
The US approved an unprecedented arms package for Taiwan, a move certain to escalate tensions with China. Washington framed the sale as bolstering deterrence while allies watch for diplomatic fallout.
Regulatory Impact
Major moves: White House reclassifies marijuana to ease federal restrictions; HHS proposes rules limiting gender-affirming care for minors; Bank of England cuts its policy rate to 3.75%.
European leaders face a decision on whether to unlock frozen Russian assets to finance Ukraine, a politically fraught choice. The debate pits legal and political constraints against urgent reconstruction needs.
The White House’s threats of a blockade against Venezuelan oil vessels have prompted some ships to reroute, raising supply jitters. The move deepens regional tensions and complicates oil-market dynamics.
Quote
“A universal high income is coming — savings may be less necessary as AI transforms work.”
— Elon Musk
Regulators have spotlighted Instacart’s AI pricing tools, culminating in a $60 million settlement tied to deceptive practices. The probe signals growing scrutiny of algorithmic pricing in online grocery markets.
OpenAI pushed product updates that deepen its enterprise and developer reach, releasing a new code-optimized model and an App Store for ChatGPT. The moves tighten its grip on AI tooling and distribution.
Fintechs are forging new paths: SoFi launched a dollar-backed stablecoin via its bank, while Coinbase expanded into stocks and prediction markets. The moves mark incumbents pushing into broader financial rails and products.
Activist Elliott has taken a multibillion-dollar stake in Lululemon, catalyzing a sharp rally and a governance push. Investors now expect a strategic overhaul and possible leadership changes.
BP replaced its chief executive as the oil major pivots back to core hydrocarbons and cost discipline. The board appointed Meg O’Neill to steady operations and refocus strategy amid energy-market volatility.
U.S. authorities have taken down major crypto-laundering operations, seizing infrastructure and disrupting networks. The actions are part of a stepped-up regulatory and enforcement push into illicit crypto finance.
Global chip capacity is being expanded as firms push production closer to end markets — TSMC in Arizona and Japanese support for Rapidus highlight the strategic race. Policymakers are backing industrial moves to secure supply chains.
Fixed income outperformed this year as bond markets rallied, but strategists warn 2026 may be trickier as policy pivots and growth risks loom. Municipal bonds could attract cash if central banks ease further.
Two transatlantic law firms are combining in what would be one of the largest revenue mergers in legal history. The tie-up underscores consolidation as firms seek scale amid pressure on margins and competition for premium clients.
