Stock Market Today: Nasdaq Jumps After CPI
The stock market’s Thursday rally hasn’t come easy.
The market benchmark index was up 1.4% in recent trading. The Dow was up 374 points, or 0.9%. The Nasdaq Composite was up 2%. The S&P and Nasdaq were on track for their best CPI release day since Jan. 15, according to Dow Jones Market Data.
The market benchmark index was up 1.3% in recent trading. The Dow was up 420 points, or 0.9%. The Nasdaq Composite was up 1.9%. AI stocks rallied in the wake of Micron Technology’s earnings, while the rest of the market got a boost from a consumer price index that came in well below expectations.
How the market trades today in the wake of the positive news on inflation really matters, Frank Cappelleri, founder of technical analysis firm CappThesis, tells Barron’s.
“A rally on good news is always the best-case outcome, and that’s especially true now with the market still roughly 40% above the April lows,” he says. “More recently, after four straight down days, the ability to log a full, broad-based advance would go a long way toward stabilizing recent volatility.”
Today’s action could help set the stage for a strong finish into the end of the year, Cappelleri says. The so-called ‘Santa Claus rally’ period, which is the final five trading days of the year and first two of the new year, begins on Dec. 24. The period is historically strong for stocks, but the major indexes have to get there first.