By Alex Financials

🏦 U.S. Markets Rally on Cooling Inflation and Tech Strength

Stocks in the U.S. closed higher Friday, extending a late-week rebound on signs that inflation pressures are easing and technology names are drawing renewed buying interest. The S&P 500, Dow Jones, and Nasdaq all climbed, with the tech-heavy Nasdaq leading the gains.

Major moves included:

• $NVDA (Nvidia) — strong performance among AI-linked tech helped lift the semiconductor cohort.

• $BA (Boeing) and $GS (Goldman Sachs) — solid gains contributed to broader market strength.

• $NKE (Nike) — notably fell sharply (~-10%), driven by disappointing earnings and weaker China sales.

Why this matters: Investors are celebrating signs that inflation may be cooling enough to allow the Federal Reserve to consider further rate cuts next year — boosting confidence in equities, especially growth and cyclicals.

📊 Inflation Data Drives Sentiment Shift

A cooler-than-expected Consumer Price Index (CPI) report for November acted as a key catalyst for market optimism:

• Headline inflation and core inflation came in below forecasts.

• This softened fears of persistent inflation and lifted equities.

Despite questions around data reliability due to earlier government shutdown delays, markets reacted positively, with the S&P 500 reclaiming technical support levels and Treasury yields moderating.

🔥 “Unusual Volatility” in Individual Stocks

Beyond broad indexes, several individual companies saw dramatic moves:

• $MU (Micron Technology) surged strongly after robust earnings and solid guidance, reinforcing its role in memory chips and AI infrastructure.

• $INFY (Infosys ADR) experienced extraordinary trading activity, with ADRs spiking up to ~+56% intraday due to a short-squeeze and technical trading dynamics — not fundamental business news.

These exuberant individual swings highlight how technical and liquidity dynamics — especially around options expirations and settlement mechanics — can stir volatility separate from fundamental trends.

🌎 Global Markets Also Reflect Positive Vibes

Stock markets outside the U.S. are feeling the ripple effects:

🇮🇳 India

• Sensex and Nifty50 ended the session strongly, erasing recent losses. Strength in Indian equities was linked to softer U.S. inflation, global market momentum, and foreign buying flows.

🌍 Other Indices

• European and Asian markets also showed generally positive performance, with futures pointing toward continued gains.

This global uplift suggests that investor sentiment is not confined to the U.S. alone, and global equities may be entering a year-end rally phase.

📉 Risks and Sell-Signals Emerging

Even amid the optimism, some cautionary patterns are surfacing:

• Analysts noted a sell signal at $BAC (Bank of America) after expanded participation in this rally — historically signaling potential volatility or correction risk ahead.

• Economic indicators remain mixed, with existing home sales slightly under expectations and consumer confidence still subdued compared to previous years.

Investors watching technical indicators may interpret these as signs to manage risk exposure into year-end or early 2026, especially if broad market sentiment shifts.

📌 Key Takeaways for Investors

1. Inflation is trending lower, sparking hopes for rate cuts — a major bullish theme globally.
2. Tech and AI stocks are leading gains, but earnings misses (e.g., Nike) are clearly dragging some areas.
3. Volatility remains high in select individual names, reminding traders that not all price action reflects fundamentals.
4. Global markets are broadly supportive, with India and other regions participating in positive momentum.
5. Risks aren’t gone — technical sell signals and mixed economic data suggest caution.