Global equity markets posted a broadly positive trend on Thursday, buoyed by favorable U.S. inflation data and a rebound in technology stocks. U.S. consumer inflation slowed to 2.7 percent in November, missing analysts’ 3.1 percent forecast. The lower reading has revived hopes that the Federal Reserve could adopt a more accommodative monetary stance in the future. “Although this is just one inflation reading—and admittedly not the Fed’s preferred inflation gauge—easing inflation concerns could open the door to a more accommodative Fed moving forward,” said eToro analyst Bret Kenwell.
The tech‑heavy Nasdaq Composite rose 1.4 percent, led by chipmaker Micron Technology, whose quarterly profit nearly tripled to $5.2 billion on the back of the AI boom. Other major tech firms—including Alphabet (Google’s parent), Nvidia and Meta Platforms (Facebook’s parent)—gained roughly two percent each. Trade Nation analyst David Morrison noted that “the sector got a boost from a strong set of quarterly results from Micron Technology,” though he cautioned that it remains uncertain whether the uptrend will evolve into a sustained “Santa Rally” or merely a short‑term correction.
In other central‑bank news, the Bank of England cut its key interest rate to 3.75 percent, while the European Central Bank left rates unchanged as expected. ECB chief Christine Lagarde said all options remain on the table for future rate decisions, citing high global uncertainty. According to GianLuigi Mandruzzato, senior economist at EFG Asset Management, the new macroeconomic projections leave little scope for further easing in the short term.
Key stock‑market indices posted mixed results: the Dow Jones Industrial Average rose 0.1 percent, the S&P 500 gained 0.8 percent, and the Nasdaq Composite advanced 1.4 percent. In Europe, the FTSE 100, CAC 40 and DAX all closed higher, while Asian markets were mostly lower. The euro and pound sterling showed modest fluctuations against the U.S. dollar, and oil prices edged higher.
As investors navigate the complexities of the global economy, the recent cooling of U.S. inflation and the tech‑stock rebound provide a cautiously optimistic outlook. Nevertheless, lingering concerns over Fed policy and AI equity valuations could hinder a potential year‑end rally. With central banks maintaining a watchful stance, market participants will closely monitor future developments to gauge the trajectory of the global economy.
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