The major U.S. index futures indicate a modestly higher opening on Friday, suggesting that stocks may experience additional gains following the significant recovery observed in the prior session. Early buying interest may be generated in reaction to a sharp increase by shares of Oracle, as the software giant is surging by more than 4 percent in pre-market trading. The increase in Oracle’s value follows a memorandum from TikTok’s CEO Shou Zi Chew, indicating that the company has consented to divest its U.S. operations to a joint venture comprising Oracle and the private equity firm Silver Lake. Nvidia is also seeing notable pre-market strength after a report from Reuters indicated that the Trump administration has initiated a review that could lead to the first shipments of the company’s second-most powerful AI chips to China. Shares of Micron Technology may also see further upside after helping lead the markets higher on Thursday due to better than expected quarterly results and impressive guidance.
Following significant selling pressure in the prior session, stocks exhibited a robust rebound during Thursday’s trading activity. The tech-heavy Nasdaq spearheaded the recovery among the major averages. The Nasdaq experienced an increase of 313.04 points, representing a rise of 1.4 percent, reaching a level of 23,006.36. Meanwhile, the S&P 500 saw an advancement of 53.33 points, or 0.8 percent, closing at 6,774.76. In contrast, the Dow exhibited fluctuations before ultimately closing up 65.88 points, equivalent to a 0.1 percent increase, at 47,951.85.
The robustness observed was prompted by the release of a closely monitored Labor Department report, which unexpectedly indicated a deceleration in the annual rate of consumer price growth. The Labor Department reported that consumer prices in November increased by 2.7 percent relative to the same month in the previous year. The year-over-year price growth in November indicates a significant deceleration compared to the 3.0 percent increase observed in September. Analysts had anticipated the annual growth rate to rise to 3.1 percent. The annual growth rate of core consumer prices, which exclude food and energy, decreased to 2.6 percent in November, down from 3.0 percent in September. The rate of core price growth was anticipated to stay constant. The inflation data, which came in below expectations, has bolstered confidence that the Federal Reserve is likely to persist with interest rate cuts in the upcoming year. “Inflation has lost its grip—and the Fed knows it,” stated Gina Bolvin. “The latest CPI report provides the market with essential validation: it confirms the persistence of disinflation and signals that policy easing is on the horizon.”
A separate report indicated that first-time claims for U.S. unemployment benefits decreased approximately in accordance with economist estimates for the week ending December 13th. The Labor Department reported that initial jobless claims decreased to 224,000, reflecting a decline of 13,000 from the revised figure of 237,000 from the previous week. Analysts had anticipated a decline in jobless claims to 225,000, down from the previously reported figure of 236,000 for the prior week. Semiconductor stocks experienced a notable recovery following a significant decline on Wednesday, culminating in a 2.5 percent increase in the Philadelphia Semiconductor Index. Software and networking stocks exhibited notable strength during the day, playing a crucial role in the rise of the tech-heavy Nasdaq. Excluding the technology sector, airline stocks exhibited robust performances, whereas energy stocks retraced some gains following Wednesday’s rally.