Stock Market Today: Dow, S&P 500 Jump After Soft Inflation Readout

The stock market saw a positive shift as the Dow and S&P 500 broke their losing streaks, buoyed by a lighter inflation report indicating U.S. inflation at 2.7%, aligning with economists' expectations. This development reflects a growing optimism among investors regarding economic stability.

The S&P 500 index managed to avoid a fifth consecutive day of losses on December 18, 2025, buoyed by positive developments from Micron, which has been pivotal in lifting technology stocks. This marks a notable shift in market sentiment as investors reacted favorably to Micron's performance, indicating a potential recovery in the tech sector.

The S&P 500 index ended its losing streak on Thursday, buoyed by a cooler-than-expected inflation report that raised expectations for further interest rate cuts by the Federal Reserve. Additionally, a rebound in the tech sector contributed positively to market sentiment, reflecting a shift in investor confidence.

Micron Technology has reported exceptionally strong financial results, driven by the surging demand for memory chips amid the ongoing AI boom. This surge is expected to create shortages, leading to increased prices for consumer electronics such as phones and PCs in the coming year.

Micron Technology has reported exceptionally strong financial results, driven by a surge in demand for memory chips amid the ongoing AI boom. This increase in demand is expected to create shortages, leading to higher prices for consumer electronics such as phones and PCs in the coming year.

The Dow Jones Industrial Average fell by 300 points following the release of jobs data indicating a rising unemployment rate, highlighting concerns about the economic outlook. Energy stocks were particularly affected, contributing to the overall decline in the blue-chip index.