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Nasdaq Surges Past 23K, Dow Jones Stays Firmly Bullish as CPI Relief and Chip Strength Lift Stocks
U.S. equities rebounded sharply as softer inflation data and strong Micron earnings revived risk appetite, lifting the Nasdaq while Dow...
Written by:
Skerdian Meta
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Thursday, December 18, 2025
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2 min read
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Last updated: Thursday, December 18, 2025
Quick overview
- U.S. equities rebounded sharply, driven by softer inflation data and strong earnings from Micron Technology.
- The Nasdaq Composite led the advance, reclaiming the 23,000 level as growth stocks outperformed.
- The latest CPI report showed inflation slowing to 2.7%, easing concerns and recalibrating expectations for Federal Reserve rate cuts.
- Sector performance favored growth, with Information Technology and Communication Services leading the gains.
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U.S. equities rebounded sharply as softer inflation data and strong Micron earnings revived risk appetite, lifting the Nasdaq while the Dow stayed firmly bullish.
Markets Rebound as Inflation Cools and Chips Deliver
Major U.S. indices staged a decisive comeback on Thursday, snapping a four-session losing streak as investors responded to a powerful combination of macro and earnings-driven catalysts. A cooler-than-expected U.S. CPI report eased concerns about persistent inflation, while robust semiconductor earnings—led by Micron Technology—reinvigorated confidence in the AI and chip complex. Together, these forces helped reset expectations for the Federal Reserve’s policy path heading into early 2026.
The Nasdaq Composite led the advance, reclaiming the psychologically important 23,000 level as growth stocks outperformed. The Dow Jones Industrial Average also posted modest gains and continues to display strong underlying momentum, remaining on a bullish trajectory toward the 50,000-point milestone.
Inflation Surprise Recalibrates Rate Expectations
The latest CPI report showed inflation slowing to 2.7% year over year, well below the 3.1% forecast and marking a notable multi-month low. The downside surprise strengthened market conviction that the Federal Reserve may have greater flexibility to cut rates more aggressively in the year ahead. Treasury yields softened in response, providing immediate support to rate-sensitive and growth-oriented assets.
Micron Earnings Power a Tech Revival
Semiconductor stocks found renewed footing after Micron Technology delivered strong earnings, easing fears of a broader slowdown in AI and memory-chip demand. Micron’s results helped stabilize sentiment across the chip sector, lifting heavyweight technology names and allowing the Nasdaq to outperform broader benchmarks.
Closing Levels for Main US Stock Indices
- Nasdaq Composite (IXIC) closed at 23,006.36, gaining +313.04 points (+1.38%), leading the market higher as strength in large-cap technology and AI-linked stocks drove risk appetite and improved overall sentiment.
- Dow Jones Industrial Average (DJI) closed at 47,951.85, adding +65.88 points (+0.14%), underperforming relative to other indices as gains in select industrials and healthcare names were partially offset by weakness in defensives and value-oriented components.
- S&P 500 (SPX) finished at 6,774.76, up +53.33 points (+0.79%), supported by broad-based advances across technology, communication services, and selected cyclical sectors, reflecting continued confidence in earnings resilience.
- Russell 2000 (RUT) ended the session at 2,507.86, rising +15.57 points (+0.62%), indicating renewed interest in small-cap stocks as investors selectively rotated into domestically focused companies.
Sector Performance Favors Growth
The rally was clearly tilted toward high-beta sectors. Information Technology and Communication Services led gains as investors rotated back into growth, while Utilities also benefited from falling yields. Defensive areas lagged, with Consumer Staples and Real Estate seeing modest selling as risk appetite improved.
Global Markets and Assets Reflect Risk-On Mood
Optimism spilled into European equities, with Germany’s DAX and Spain’s IBEX posting solid gains as global inflation concerns eased. In commodities, gold edged slightly lower as safe-haven demand faded, while cryptocurrencies tracked softer, with Bitcoin slipping alongside broader commodity weakness.
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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