Wall Street Stages Strong Rebound as Inflation Cools More Than Expected in December 2025

• Why Did U.S. Stocks Rally Today?
• Micron’s Blowout Earnings: More Than Just a Chip Rally?
• Economic Data Mixed: Philly Fed Stumbles, Jobless Claims Hold Steady
• Corporate Spotlight: Accenture’s Growth vs. Margin Squeeze
• Trump Media’s Fusion Power Play: Genius or Hype?
• FAQ: Your Quickfire Market Questions Answered

U.S. stocks surged mid-session on December 19, 2025, fueled by softer-than-expected inflation data. The Dow Jones and Nasdaq rallied as November’s annualized CPI rose just 2.7% versus forecasts of 3.1%, boosting hopes for Fed policy easing. Micron Technology led tech gains with an 11% jump after smashing earnings estimates, while Accenture and Eli Lilly made waves with mixed results and drug pricing moves. Meanwhile, TRUMP Media’s fusion energy deal sparked a 20% pre-market rally. Here’s why traders are cheering—and what’s next for markets.

Why Did U.S. Stocks Rally Today?

The major indices caught fire after November’s Consumer Price Index (CPI) showed inflation cooling to 2.7% annually—well below the 3.1% consensus. "This is the Christmas gift bulls wanted," quipped a BTCC analyst. "The Fed now has runway to cut rates sooner." The Dow Jones climbed 0.93% to 48,332, while the Nasdaq’s 1.95% leap to 23,136 highlighted tech’s dominance. Even Micron’s semiconductor surge couldn’t overshadow the macro story: With Core CPI (excluding food/energy) at 2.6% versus 3% expected, pricing pressures are clearly easing.

Micron’s Blowout Earnings: More Than Just a Chip Rally?

Micron Technology (MU) stole the spotlight, soaring 11.22% to $250.82 after crushing fiscal Q1 2026 estimates. Revenue hit $13.64B (up 56.65% YoY), trouncing the $12.83B forecast. EPS of $4.78 versus $1.79 a year ago left analysts scrambling to upgrade targets. "Their AI-driven memory chips are printing money," noted TradingView’s tech specialist. Sequential revenue growth of 20.57% suggests the semiconductor winter is over.

Economic Data Mixed: Philly Fed Stumbles, Jobless Claims Hold Steady

Not all indicators shone. The Philly Fed Manufacturing Index nosedived to -10.2 in December from October’s 2.5—far worse than the -1.7 expected. Yet weekly jobless claims met forecasts at 224K, offering labor market stability. "Manufacturing’s weak, but consumers keep spending," observed a Bloomberg Economics commentator. "That Goldilocks mix—cooling inflation + resilient jobs—is why markets partied."

Corporate Spotlight: Accenture’s Growth vs. Margin Squeeze

Consulting giant Accenture (ACN) reported Q1 FY2026 revenue up 6% to $18.7B (top of its $18.1B-$18.75B guidance), but operating margins slid to 15.3% from 16.7%. Adjusted EPS of $3.94 beat by $0.20, though cost pressures lingered. "Their cloud/AI deals are strong, but wage inflation bites," said a CNBC contributor. Meanwhile, Eli Lilly (LLY) slashed Canadian prices for obesity drug Zepbound by 20%, per Globe and Mail reports—a potential preview of broader pricing shifts.

Trump Media’s Fusion Power Play: Genius or Hype?

In a head-turning move, Trump Media (DJT) announced a $6B merger with fusion energy firm TAE Technologies, sending shares up 20% pre-market. The deal—set to close by mid-2026—would create a 50/50 ownership structure. "Fusion’s the holy grail, but commercialization is years away," cautioned a Reuters energy analyst. Traders clearly bet on the spectacle: DJT’s meme-stock DNA trumped skepticism.

FAQ: Your Quickfire Market Questions Answered

What caused Wall Street’s December 19 rally?

The primary driver was November’s cooler-than-expected CPI reading (2.7% vs. 3.1% forecast), which boosted expectations for Federal Reserve rate cuts in 2026.

How did Micron Technology perform in its latest earnings?

Micron posted fiscal Q1 2026 revenue of $13.64B (up 56.65% YoY) and EPS of $4.78, crushing estimates of $12.83B and $3.96 respectively.

Why did Trump Media’s stock surge?

Shares jumped 20% pre-market after announcing a $6B merger with fusion energy company TAE Technologies, though the deal won’t close until mid-2026.