US Stock Markets Rise on Lower Inflation Data and Tech Sector Strength

Market Performance

US stock markets opened and closed higher on December 18, 2025, driven by better-than-expected inflation data that increased expectations of further rate cuts by the Federal Reserve. The Dow Jones Industrial Average showed steady gains throughout the day, ultimately closing at 47,951.85, a 0.14% increase ²

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Sector Performance

The technology sector played a significant role in the market's positive performance, with the Nasdaq Composite leading gains at 1.38% to 23,006.36 ²

. Strong guidance from chipmaker Micron Technology provided a boost to the sector, signaling robust demand for AI-related technologies. The S&P 500 also recorded significant gains, rising 0.79% to 6,774.76 as six out of eleven sectors showed positive movement, led by consumer non-essentials which rose 1.78% ²

Source 2

https://investasi.kontan.co.id/news/wall-street-ditutup-menguat-dow-sp-500-dan-nasdaq-didorong-reli-saham-teknologi

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Inflation Data Analysis

The Consumer Price Index (CPI) report for November showed a 2.7% annual increase, below the 3.1% expected ¹

. Core inflation, excluding volatile food and energy components, came in at 2.6% annually, also below market expectations of 3% ¹

Source 1

https://investasi.kontan.co.id/news/wall-street-dibuka-menguat-didorong-data-inflasi-as-yang-lebih-rendah

. This data release was crucial in shaping market expectations regarding future monetary policy decisions.

Market Implications

The lower-than-expected inflation data strengthened market expectations of additional rate cuts by the Federal Reserve. This monetary policy outlook, combined with positive technology sector performance, contributed to the overall market gains observed during the day.