US stock futures rose on Thursday, eyeing a recovery from Wall Street’s tech-fueled sell-off,as investors digested the easing inflation pressures from the latest reading on consumer prices that could help set expectations for the path of interest rates.
S&P 500 futures (ES=F) moved up roughly 0.6%, while those on the Nasdaq 100 (NQ=F) gained 1%, looking to rebound after Oracle (ORCL)-propelled AI trade worries spurred another bruising session for tech. Meanwhile, Dow Jones Industrial Average futures (YM=F) put on 0.3%.
Stocks were little changed following Thursday’s cooler-than-expected Consumer Price Index (CPI) report, which showed inflation rose 2.7% in November over the prior year and 2.6% on a “core” basis.
As with Tuesday’s monthly jobs report, economists have noted that the inflation data may be less reliable than normal thanks to the US government shutdown. For one thing, the report, originally scheduled for Dec. 10, was missing month-on-month comparisons, given the disruption to the collection of CPI data in October.
At the same time, the Federal Reserve seems more attentive to cracks in the labor market than to price pressures. On Wednesday, Fed governor Chris Waller signaled support for rate cuts before the release of the CPI update.
Meanwhile, Wall Street is keeping watch for more signs of tech malaise after Oracle lost key backing for a $10 billion data center project, sending its stock tumbling on Wednesday along with heavyweight names like Nvidia (NVDA) and Broadcom (AVGO), among others.
In corporates, Trump Media & Technology Group (DJT, DJTWW) agreed to a $6 billion deal to merge with Tae Technologies, a fusion power group backed by Alphabet (GOOG, GOOGL) and Chevron (CVX). Shares in Trump Media, the home of the Truth Social platform, surged after the announcement, seen as a bet on AI-fueled energy demand.
LIVE10 updates
Stock market jumps on lower than expected year-over-year inflation
Futures on major stock market indexes jumped to the upside after Consumer Price Index data showed inflation eased over the 12 months ended in November.
The tech-heavy Nasdaq 100 (NQ=F) led the way up, picking up 1.2% or more than 300 points, while futures on the E-Mini S&P 500 (ES=F) and the blue chip-heavy Mini Dow Jones Industrial Average (YM=F) ticked up by 0.8% and 0.5%, respectively.
In the fixed income market, interest rates on 10-year US Treasurys (^TNX) shed around 0.7% in the minutes after the inflation data’s release.
Headline CPI came in below expectations, with a reading of 2.7% surprising to the downside against an expected 3.1%. Similarly, “core CPI,” stripping out the volatile food and energy categories, came in at 2.6% against economists’ expectations of 3%.
Inflation slows down in November as consumer prices rise 2.7% year-on-year
Consumer prices rose 2.7% through the 12 months ended in November, according to data released Thursday morning, keeping US inflation above the Federal Reserve’s target but coming in significantly lower than analyst forecasts.
Stocks on the London blue-chip index FTSE 100 (^FTSE) were flat on Thursday after the Bank of England cut interest rates to their lowest level in nearly three years.
The committee voted 5-4 to cut interest rates by 25 basis points to a rate of 3.75%, citing increased risks to the labor market and the expectation that inflation will fall toward its target more quickly. The four who voted against cutting rates preferred holding rates steady.
The central bank cut rates for the sixth time after the Federal Reserve also opted to lower interest rates last week to a range of 3.5% to 3.75%.
“We still think rates are on a gradual path downward,” BoE governor Andrew Bailey said. “But with every cut we make, how much further we go becomes a closer call.”
The central banks of Sweden and Norway decided to maintain their borrowing rates. The European Central Bank, which is scheduled to announce its decision today, is also expected to leave rates unchanged.
Good morning. Here’s what’s happening today.
Economic data: Initial jobless claims (week ended Dec. 13); Consumer price index (November); Philadelphia Federal Reserve business outlook (December); Kansas City Federal Reserve manufacturing activity, (December)
Earnings calendar: Accenture (ACN), NIKE (NKE), Cintas Corporation (CTAS), FedEx (FDX), HEICO Corporation (HEI), Darden Restaurants (DRI), FactSet Research Systems (FDS), Birkenstock (BIRK), CarMax (KMX), KB Home (KBH), BlackBerry Limited (BB), Scholastic Corporation (SCHL), FuelCell Energy (FCEL)
Here are some of the biggest stories you may have missed overnight and early this morning:
Read more here in the takeaway from today’s Morning Brief.
Trump Media, TAE Technologies to combine in $6B deal
Trump Media & Technology Group stock soared before the bell after announcing that it will combine with TAE Technologies Inc. (TATE.PVT) in an all-stock transaction valued at $6 billion, according to a statement from TAE on Thursday. DJT (DJT) stock rose over 25%% during premarket trading today following the news.
The deal will create the world’s first publicly traded fusion company.
Premarket trending tickers: Maplebear, Coinbase, Birkenstock, and Accenture
Maplebear Inc. (CART) stock fell 6% before the bell on Thursday following the news that rival DoorDash will be partnering with OpenAI to offer a grocery-shopping app within ChatGPT’s platform. Maplebear, which operates under the brand name Instacart, also launched its own app with OpenAI earlier this month.
Coinbase (COIN) stock rose 2% during premarket trading. The crypto exchange announced it will be rolling out stock trading and prediction markets on its app, placing it in direct competition with Robinhood.
Birkenstock (BIRK) stock fell 7% during premarket trading. The German shoemaker reported better-than-expected fourth quarter results but offered a cautious outlook for fiscal 2026, which fell short of analyst estimates.
Accenture (ACN) stock fell more than 3% before the bell today. The company beat Wall Street estimates for first quarter revenue; however, it faces uneven demand from the public sector and government clients.
Elliott said to build a $1 billion-plus stake in Lululemon
Shares of Lululemon (LULU) are rising in premarket after media reports of moves by activist investor Elliott.
Stock bulls have a worryingly long list of 2026 risks to ponder
US stocks will come up against a long list of potential stumbling blocks next year, according to Bloomberg, linked to risks around AI expectations; valuation and concentration; inflation and rates; geopolitics and trade, and a macroeconomic slowdown.
Micron jumps after forecasting blowout earnings on booming AI market
Micron shares jumped in after-hours trading Wednesday after the company forecast second-quarter profit to be nearly double what analysts projected. The results could also once again fortify faith in the AI trade after tech’s latest rocky stretch.
