On December 19, U.S. stocks advanced as investors moved back into large technology and chip names after fresh inflation figures suggested price pressures were easing more quickly than economists had expected.
On the diplomatic front, European leaders gathered in Brussels to debate using frozen Russian central bank assets to continue financing Ukraine. Belgium and several partners pressed for guarantees that any legal and financial risk would be shared, while other governments stressed the need to maintain support for Kyiv as the war drags on and to demonstrate unity after President Donald Trump recently described European allies as weak. Officials framed the talks as a test of the bloc’s resolve at a time when public finances are already stretched.
On the economic front, the softer United States inflation data landed alongside signs of a resilient labor market, with new jobless claims slipping back after a sharp rise the week before even as the unemployment rate has edged higher.
Traders increased wagers on rate cuts over the coming year, though some analysts cautioned that distortions from the earlier government shutdown mean the trend still needs confirmation.
The European Central Bank left interest rates unchanged and sounded slightly more confident about its growth and inflation outlook, while policymakers signaled that holding policy steady through much of next year remains the most likely path even if another cut cannot be ruled out.
In assets, the major United States indices all climbed, with the Nasdaq outperforming as Micron rallied after issuing an earnings forecast far above Wall Street estimates on the back of strong demand linked to artificial intelligence.
In commodities, gold slipped slightly as traders cut back some inflation hedges after the softer consumer price reading but remained near record levels, while silver stayed close to a recent all-time high.
The dollar weakened against the yen and the Swiss franc as markets leaned further toward rate cuts, and in digital assets, Bitcoin traded around $85,600, Ethereum hovered near $2,820 with a modest gain, and Solana traded just under $119 after a small pullback.
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