U.S. stocks moved higher after November’s core CPI inflation came in below expectations, boosting investor confidence that price pressures are easing. The Nasdaq led gains as technology stocks rebounded, while the S&P 500 advanced and reclaimed its 50-day moving average. The Dow Jones Industrial Average edged higher but lagged broader market strength.The session’s biggest winner was Micron Technology (MU), which surged more than 11% after delivering a strong earnings and revenue beat along with an upbeat outlook. The results lifted semiconductor stocks broadly, pushing ASML Holding (ASML) higher and supporting gains in chip-related names. Western Digital (WDC) also stood out, climbing over 5% on improving profitability and continued strength in data storage demand.
Defense stocks remained in focus as Elbit Systems (ESLT) extended gains following a breakout tied to a new rocket artillery contract with Greece. In energy, nuclear power names outperformed, led by Constellation Energy (CEG), which jumped more than 6% after highlighting its long-term power supply deal with Microsoft (MSFT) to support AI-driven data center demand.
Gold stocks led the metals group, with Newmont (NEM) continuing its recent rally as investors positioned for strong earnings growth ahead. Consumer-related stocks also showed strength, as Carvana (CVNA) advanced more than 2%, while Tesla (TSLA) and Nvidia (NVDA) rebounded after sharp losses in the prior session.
On the downside, earnings-related weakness hit several stocks. Birkenstock (BIRK) plunged more than 10% following its quarterly results, while CarMax (KMX) dropped over 6%. In technology, Celestica (CLS) fell nearly 2% after reversing earlier gains, signaling continued short-term weakness.
Overall, the market reaction reflected optimism driven by cooling inflation, with investors rewarding stocks tied to strong earnings momentum while punishing companies that disappointed.