The tech rally boosts the indices: US CPI slows inflation, the AI rush excites Wall Street (December 19, 2025)

US CPI Data Surprises Positively: The Central Bank May Accelerate Rate Cuts

The November inflation numbers beat expectations, with the US CPI showing a significant slowdown. This data rekindles investors’ hopes for a more accommodative monetary policy from the Federal Reserve in the coming year.

According to Hassett, the US economy is on a path of high growth accompanied by contained inflationary pressures. Wage dynamics remain above price increases, a signal the Fed was looking for. Trump is considering 3-4 candidates for the upcoming Federal Reserve chairmanship, with an announcement expected soon.

The market reacts enthusiastically: risky assets gain new momentum, but volatility could return if controversies regarding CPI data methodology emerge. Economists are already pointing out anomalies in housing price calculations, suggesting caution in overly optimistic interpretations of the numbers.

Tech Giants and AI Lead the Rally

In the context of a US CPI that fuels optimism, the Nasdaq rises 1.38%, outperforming the Dow Jones (+0.14%) and S&P 500 (+0.79%). Clearly, software and semiconductors continue to be the true market drivers.

The chip push: Micron Technology surprises the market with quarterly results well above expectations, gaining over 10%. The demand-supply tension for memory, fueled by massive investments in AI infrastructure, remains the main driver. TSMC accelerates further with the transition to 2nm, promising a capacity of 100,000 wafers per month by 2026. In the semiconductor sector, Marvell Technology (+3%) and AMD (+1%) also participate in the ascent.

Silicon Valley’s mega-caps: Apple rises nearly 3%, driven by expectations of production expansions with Asian suppliers. Amazon (+2%) continues to benefit from the frenzy around AI infrastructure, while Google (+2%) strengthens its position in government projects related to artificial intelligence. Tesla accelerates over 3%, riding the positive sentiment around technological innovation. Meta and Microsoft (+2% circa) participate in the upward movement, consolidating the narrative of a generation of companies focused on AI and energy.

Oracle draws attention: the cloud giant rises nearly 6% after Michigan authorities approved shared energy infrastructure with OpenAI. The project, requiring 1.4 GW of power and several billion dollars in investment, represents the convergence of two megatrends: clean energy and AI. This signals accelerates expectations for Oracle’s cloud market share.

Stories in Light and Shadow: Micron Shines, Nike Retreats, SoFi Tests a New Approach

While Micron writes a new chapter of success in memory chips, the storage sector overall sees Western Digital up over 5%. Demand does not slow down, and analysts forecast gross margins above 60% in Q4 2025.

Nike, on the other hand, disappoints heavily with revenue of $12.43 billion in the second quarter, up 0.6% but below consensus. Net profit falls 32% year-over-year, while gross margin contracts to 40.6%. The stock drops over 10% in after-hours trading. Elliott, holding over $1 billion in positions, is already exerting pressure for leadership change.

Meanwhile, SoFi Technologies attempts to expand its fintech horizon by launching SoFiUSD, a stablecoin backed 100% in dollars. The stock advances over 4%, as the market recognizes the company’s strategic diversification into the cryptocurrency ecosystem, although the regulatory landscape remains uncertain.

Space as the New Frontier: Trump’s Decree Sparks Attention

Rocket Lab jumps 11% and AST SpaceMobile gains over 6% after Trump signed an executive order on US space policy. The government’s focus on exploration and commercialization reignites interest among space operators.

Meanwhile, the cannabis sector experiences a wave of developments: Canopy Growth drops nearly 12% and Tilray falls over 4% as investors apply the classic “buy the rumor, sell the news” scheme in reaction to promises of easing cannabis regulations.

Gold Remains a Safe Haven: Goldman Sachs Raises the Bar

Goldman Sachs has raised the target price for gold to $4,900 per ounce, forecasting a 14% growth by 2026. Central banks worldwide continue to accumulate the precious metal (70 tons per month on average), driven by persistent geopolitical risks. Demand as a portfolio protection tool remains strong amid economic and political uncertainty.

What to Expect: The Next Move of the Bank of Japan

The market is watching closely the decision of the Bank of Japan, where an interest rate hike is expected. Governor Kazuo Ueda will hold a press conference at 14:30, potentially providing guidance on the future trajectory of Japanese monetary policy.

In summary: the US stock market closes positively, fueled by US CPI falling below expectations and ongoing optimism around AI. Technological leadership and semiconductor dominance suggest the momentum should continue until the end of the year. However, microeconomists raise concerns about anomalies in the data; investors would do well to closely monitor upcoming economic releases in January for signs of a potential Fed policy correction.

Disclaimer: This content has been prepared through market research and analysis. It does not constitute investment advice.