Stock Market Live December 18: A Cool Inflation Report Heats Up the S&P 500 (VOO)

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Inflation grew overmuch much dilatory than expected past month, arsenic revealed successful a just-released Consumer Price Index (CPI) study from the U.S. Bureau of Labor Statistics.

November's ostentation complaint was lone 2.7%, not the 3.1% predicted by economists. "Core" CPI, which does not number changes successful nutrient and vigor prices, grew lone 2.6%, which was besides little than the predicted 3%.

Investors are pleased with the news, and the Vanguard S&P 500 ETF (NYSEMKT: VOO) is up 0.8% premarket.

Why are investors pleased? Recall that the Federal Reserve has 2 alleged "mandates." When mounting involvement rates, it attempts to (1) power ostentation and (2) beforehand afloat employment. With ostentation increasing little than expected, the Fed volition person much state to absorption connected its 2nd mission: helping the system turn by lowering involvement rates without worrying that a looser monetary argumentation mightiness let ostentation to get retired of control.

Long communicative short, a chill ostentation study increases the likelihood of different involvement complaint chopped successful January. That's mostly viewed arsenic bully quality for the banal market, and this explains today's affirmative determination connected the Voo.

• November’s CPI study shows ostentation cooler than expected astatine 2.7%.

• Micron reported terrific net past night, and added to capitalist enthusiasm with a beardown net forecast.

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In net news, S&P 500 constituent institution Micron (Nasdaq: MU) bushed net by 84 cents past night. Micron reported a $4.78 per stock nett for its fiscal Q1 2026, connected income of $13.6 billion, which was besides amended than expected.

Micron besides guided higher for Q2. Earnings whitethorn emergence arsenic precocious arsenic $8.42 per share, good up of statement forecasts for $4.49, with beardown income of $18.7 billion. Micron banal is soaring, up much than 14% premarket.

A 2nd S&P 500 company, Cintas (Nasdaq: CTAS) reported net this greeting and bushed by a penny. The azygous proviso institution earned $1.21 successful its fiscal Q2, and edged retired gross projections with income of $2.8 billion.

Guidance was strong, with Cintas forecasting full-year nett betwixt $4.81 and $4.88 per share. Sales whitethorn beryllium a spot weaker than expected, astatine astir $11.1 billion, but investors look consenting to place that flaw. Cintas banal is up 3% premarket.