A lower-than-expected reading of US inflation helped Wall Street claw back some ground after what has been another difficult week for stocks across the Atlantic.
The latest CPI number showed prices rose 2.7% over the 12 months to November. That pace was down from 3% in September and materially lower than the 3.1% forecast by analysts. In the opening the door for more rates cuts from the Federal Reserve in 2026, it helped US indices to stage a modest recovery after a period which has been dominated by concerns about valuations and spending in the AI space.
Broadband business Comcast was in demand with investors thanks to chatter about activist investor involvement and a positive reception for shares in its newly listed cable network spinoff Versant.
Cryptocurrency exchange Coinbase Global fell amid continuing pressure on crypto prices while backup power generation play Generac was under pressure on weak quarterly earnings.
Micron Technology
Memory chip maker Micron Technology saw its shares jump as much as 9% in pre-market trading on 17 December after fiscal second quarter revenue and earnings came in ahead of analysts’ expectations.
The company projected second quarter adjusted earnings which were nearly double consensus expectations as prices for its high-bandwidth memory chips soared amid tight supply due to booming demand from data centres.
CEO Sanjay Mehrotra commented: “This growth in AI data centre capacity is driving a significant increase in demand for high-performance and high-capacity memory and storage. Server unit demand has strengthened significantly.”
Micron is one of only three companies that make the high-bandwidth memory chips needed for AI applications. In early December the firm said it would discontinue selling memory chips directly to consumers to preserve supply for AI chips.
Micron shares have risen 168% so far in 2025, handsomely outperforming the Nasdaq Composite index which is up around 18%.
Nike
Global sportswear business Nike saw its shares slump heavily in pre-market trading despite posting better-than-expected headline numbers for its second quarter.
Earnings per share came in at $0.53 versus the $0.38 expected while revenue was also higher than the $12.22 billion which had been pencilled in at $12.43 billion.
However, investors focused on a huge slump in sales in China – down some 17% to $1.42 billion – evidence of tariff-related pressure on margins and a weak showing for its Converse brand. Converse sales were down 30% having fallen 27% in the first quarter of its financial year
CEO Elliott Hill returned to the business in October 2024 with hopes of restoring the company’s fortunes and described Nike as being “in the middle inning of our comeback”.
In China the company is looking to revamp its stores, clear unsold inventory and master a complicated and large ecommerce market.
FedEx
Logistics giant FedEx is often seen as a bellwether of US and global economic activity thanks to the depth and breadth of its operations.
Its fourth-quarter earnings came in ahead of expectations with revenue of $23.47 billion against the forecast $22.79 billion and adjusted earnings per share at $4.82 versus the $4.11 consensus estimate. FedEx also raised the low end of its full-year forecast for earnings and revenue.
“FedEx is the heartbeat of the industrial economy — that’s the global network that we have put in place,” CEO Raj Subramaniam said. Subramaniam also noted that the company was a beneficiary of the ramp up in data centre spending as customers look to move parts within countries and across borders.
Though he also acknowledged the company has been affected by the trade stand-off between the US and China and had “flexed down our capacity” in response.
Tom Sieber: Content editor
Tom Sieber is AJ Bell's Content Editor. He was previously the Editor of Shares Magazine. He has been with the business since 2012.
Tom is a regular contributor to the AJ Bell Money & Markets...
