"Inflation grew much more slowly than expected last month, as revealed in a just-released Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics. November's inflation rate was only 2.7%, not the 3.1% predicted by economists. "Core" CPI, which does not count changes in food and energy prices, grew only 2.6%, which was also less than the predicted 3%."
"Why are investors pleased? Recall that the Federal Reserve has two so-called "mandates." When setting interest rates, it attempts to (1) control inflation and (2) promote full employment. With inflation growing less than expected, the Fed will have more freedom to focus on its second mission: helping the economy grow by lowering interest rates without worrying that a looser monetary policy might allow inflation to get out of control."
"Micron reported a $4.78 per share profit for its fiscal Q1 2026, on sales of $13.6 billion, which was also better than expected. Micron also guided higher for Q2. Earnings may rise as high as $8.42 per share, well ahead of consensus forecasts for $4.49, with strong sales of $18.7 billion. Micron stock is soaring, up more than 14% premarket."
U.S. headline inflation slowed to 2.7% in November, below the 3.1% forecast, while core CPI rose 2.6%, under the 3% prediction. Investors responded positively, lifting the Vanguard S&P 500 ETF about 0.8% premarket. Slower inflation reduces pressure on the Federal Reserve, increasing flexibility to emphasize employment and consider lowering interest rates, which raises the probability of a January rate cut. Micron beat expectations with $4.78 EPS on $13.6 billion in sales, guided Q2 to as much as $8.42 EPS and $18.7 billion in sales, and jumped more than 14% premarket. Cintas narrowly beat earnings and offered strong full-year profit guidance.
Read at 24/7 Wall St.
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