CPI Report, Micron Rally Help Lift Equity Markets Intraday

01:52 PM EST, 12/18/2025 (MT Newswires) -- US benchmark equity indexes were higher intraday, aided by a cooler-than-expected consumer inflation report and a post-earnings rally in Micron Technology (MU) shares.

The Nasdaq Composite was up 1.8% at 23,099.2 after midday Thursday, while the S&P 500 rose 1.1% to 6,796.7. The Dow Jones Industrial Average advanced 0.5% to 48,109.9. Among sectors, consumer discretionary jumped 2.2%, the best performer. Energy saw the biggest drop of 1.2%.

In economic news, US consumer prices rose less than expected on an annual basis in November, while core inflation decelerated to the lowest since early 2021, delayed government data showed Thursday.

The Bureau of Labor Statistics didn't collect survey data for October due to a record-long federal government shutdown that ended last month. November's report was originally scheduled to be released Dec. 10.

"A surprisingly sharp decline in US consumer price inflation should grease the wheels for further (Federal Reserve monetary policy) easing in 2026," BMO Capital Markets said in a note. "The (Federal Open Market Committee) will take much comfort from the report, allowing it to focus on addressing the weakness in labor markets."

Weekly applications for unemployment insurance in the US fell more than projected, while continuing claims rose, official data showed.

"Initial jobless claims data continue to be influenced by seasonal volatility, but the level of claims is consistent with relatively steady labor market conditions," Oxford Economics said in a note. "Continued claims, which aren't immune to seasonal volatility, remain at a level consistent with a slow pace of hiring."

US Treasury yields were lower intraday, with the 10-year rate down 2.7 basis points at 4.12% and the two-year rate dropping 1.2 basis points to 3.47%.

In company news, Micron shares jumped nearly 14%, the top gainer on the S&P 500. The semiconductor maker's fiscal first-quarter results surpassed Wall Street's estimates late Wednesday as cloud memory revenue nearly doubled year over year.

"With (Micron's) implied forward (earnings per share) lifting significantly, the stock now trading well below what we view as typical multiples on peak earnings, and our view that our model likely has room for more upside over the next few quarters, we see no reason to temper our optimism," Wedbush Securities said in a note Thursday.

Amazon.com (AMZN) was the best performer on the Dow intraday, up 2.7%, followed by fellow mega-cap tech stocks Nvidia (NVDA) and Microsoft (MSFT) .

Lululemon Athletica (LULU) was among the top gainers on the S&P 500, up 5%. The Wall Street Journal reported Wednesday, citing unnamed sources, that Elliott Investment Management has amassed a stake of more than $1 billion in Lululemon and is bringing a potential chief executive candidate to the athletic apparel and footwear retailer.

On Thursday, Lululemon said it plans to expand into six new international markets in 2026 under franchise partnership agreements.

CarMax (KMX) reported better-than-expected fiscal third-quarter results, while the used-vehicle retailer plans to lower retail margins and increase marketing spend that it said should improve sales trends, but will impact near-term earnings. CarMax (KMX) shares were down 3.1% intraday.

Sportswear giant Nike (NKE) and parcel delivery company FedEx (FDX) are scheduled to report results after the closing bell Thursday.

West Texas Intermediate crude oil was up 0.9% at $56.43 a barrel intraday.

Gold fell 0.1% to $4,366.70 per troy ounce, while silver dropped 2.5% to $65.23 per ounce.

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