November CPI unexpectedly cools down, triggering a reshuffle in the market landscape: US stocks rise across the board, Micron Technology leads with over 10% gains, gold closes lower.

Inflation Data Unusually Declines, Signaling Continued Federal Reserve Rate Cuts

The U.S. Bureau of Labor Statistics released the November Consumer Price Index data, showing the year-over-year CPI growth slowed to 2.7%, the lowest increase since early 2021, well below market expectations of 3.1%. Core CPI, excluding food and energy, rose 2.6% YoY, also below the expected 3%. Meanwhile, initial unemployment claims for the latest week dropped to 224,000, slightly below expectations.

This data immediately sparked market optimism about the continuation of the Fed’s rate cut cycle. The VIX fear index fell by 4.37%, the 2-year U.S. Treasury yield briefly touched a two-month low of 3.43%, and the 10-year Treasury yield retreated to 4.12%.

However, some economists question the authenticity of the data. Capital Economics economist Ashworth pointed out that housing prices have been essentially flat over two months, which is highly unusual during non-recession periods. Morgan Stanley economist Gapan believes that the recent data decline may reflect the Labor Department using outdated price data in certain categories, causing statistical anomalies. He emphasized that November data was volatile, making it difficult to draw firm conclusions, and further validation from December data is needed.

U.S. Stock Markets Rise Across the Board, Stock-Specific Divergence Evident

Boosted by cooling inflation, U.S. stocks generally rose. The Dow Jones Industrial Average increased by 0.47%, the S&P 500 rose by 1.16%, and the Nasdaq Composite surged by 1.81% to 23,006 points. The China Golden Dragon Index rebounded by 0.97%.

European markets also showed gains. Germany’s DAX 30 rose by 1%, France’s CAC 40 increased by 0.8%, and the UK FTSE 100 gained 0.65%.

In individual stocks, memory chip manufacturer Micron Technology led the gains, rising over 10% on optimistic earnings outlooks. Amazon’s stock climbed 2.5%, making it the best performer among Dow components. Nvidia and Tesla rose by 1.9% and 3.5%, respectively, while Oracle rebounded by 0.8%.

Hong Kong Stock Index Futures Close Night Session at 25,675 Points, Reaching New Stage High

Hong Kong stocks saw the Hang Seng Index futures close at 25,675 points in the night session, up 177 points from the previous day’s close of 25,498, an increase of about 0.7%, with a daily trading volume of 13,944 contracts. The China Enterprises Index futures closed at 8,903 points, 61 points above the previous session. The strong night market performance reflects market optimism about the near-term outlook.

Commodities and Forex: Gold Rises and Falls, US Dollar Slightly Strengthens

Gold spot prices fell by 0.15% to $4,332.5 per ounce. Despite inflation cooling typically being positive for gold, profit-taking occurred after reaching a high. The US dollar index edged up by 0.02% to 98.4. USD/JPY declined by 0.08%, and EUR/USD fell by 0.14%.

In cryptocurrencies, Bitcoin decreased by 0.94% over 24 hours, currently at $85,406, with recent data showing the price has risen to $87.77K; Ethereum declined by 0.25% over 24 hours, now at $2,825, with the latest price rising to $2.95K.

Central Bank Policy Shift: ECB Announces End of Rate Cut Cycle, BoE Slows Pace of Rate Cuts

The European Central Bank maintained interest rates for the fourth consecutive time, keeping the deposit rate at 2%. According to sources, based on the latest economic outlook, ECB officials expect the rate cut cycle to have likely ended. After eight rate cuts, unless significant shocks occur, rates should remain at current levels. However, one policymaker noted that if inflation remains below target for several months, further easing of monetary policy remains possible.

The Bank of England cut its policy rate by 25 basis points to 3.75% with a 5-4 vote, the lowest since February 2023. BoE Governor Bailey stated that rates are on a gradual downward trajectory, with increasing difficulty in each rate cut decision, but the downward trend in inflation further solidifies room for easing. Bailey expects the pace of rate cuts to slow at some point, though the exact timing depends on evolving conditions.

Tech Giants Micron, Meta, Oracle and Others Move

Micron Technology surged on the back of optimistic earnings guidance, becoming the star stock of the day. Meta is secretly developing a new image and video AI model codenamed “Mango,” as well as a next-generation large language model, expected to be released in the first half of 2026.

Oracle and OpenAI received regulatory approval for their joint data center project in Michigan. The facility will have a capacity of 1.4 gigawatts, and their planned total capacity across the U.S. will exceed 8 gigawatts, with over $45 billion in investments planned over the next three years.

Corporate Earnings: Nike Profits Drop 32%, Shares Fall Nearly 10% After Hours

Nike’s Q2 revenue was $12.43 billion, up 0.6% YoY; net profit was $792 million, down 32%; EPS was $0.53, down 32%. Gross margin declined from 43.6% last year to 40.6%. Due to poor earnings performance, Nike’s stock fell nearly 10% after hours, closing at $59.20.

Commodities: Copper Prices Hit New Highs, Supply Tightness Expectations Support Prices

Australian mining giant BHP stated that the total market value of copper is between $300 billion and $400 billion annually, with demand expected to grow by 70% by 2050. However, declining new discoveries and rising mining difficulties are expected to keep supply tight until next year or even 2030. LME copper has risen 34% year-to-date, with London copper reaching a record high of $11,952 per ton. UBS forecasts copper prices could reach $13,000 by the end of next year.

Market Outlook: AI Valuation Risks Are the Biggest Single Threat to 2026

Deutsche Bank’s latest global market survey shows that 57% of respondents believe that the cooling of enthusiasm for AI, leading to a collapse in tech stock valuations, is the biggest risk facing markets next year. The second is the risk of the new Fed Chair pushing for aggressive rate cuts. About 71% of respondents prefer to allocate funds to other parts of the US stock market rather than the “Big Seven.” Regarding 2026 return expectations, the Big Seven stocks are expected to rise by an average of about 7%, with the S&P 500 expected to increase nearly 7%, the strongest outlook in nearly four years.