Euro HICP Rise; US Tech-Led Gains

December 2, 2025 at 21:00 UTC

4 min read

Euro HICP inflation chart and US tech equities performance, highlighting inflation and market gains

Key Points

Eurostat's flash HICP rose to 2.2%, which investors treated as reinforcing services-driven core pressures and has put upward pressure on short-dated sovereign yields.
US equities advanced as Technology and Industrials led sector gains and ETFs like VGT and XLI outperformed, supporting higher closes for the S&P 500 (SPX) and Nasdaq.
Investor allocation to U.S. bonds fell to its lowest level since before the Global Financial Crisis, which underscored weak fixed-income demand and added upward pressure on yields.
Individual stocks saw wide moves - MDB and TMC were top winners while SYM and ALAB were the largest decliners - coinciding with multiple completed and announced M&A transactions.

Global Market Summary

US equities advanced, with the S&P 500 (SPX) up 0.39% and the Nasdaq (^IXIC) up 0.71%. European markets were mixed after Eurostat's flash HICP rose to 2.2%, leaving the CAC 40 (FRA40) down 0.28% while the DAX (DAX) gained 0.51%. In Asia the Shanghai Composite (000001.SS) slipped 0.42% as the Hang Seng (HSI) rose 0.24% and the Nikkei (NKY) finished effectively flat (0.00%).

Top Movers

Technology and Industrials led sector gains, with VGT (+1.16%) and XLI (+1.15%) outperforming. Energy and Materials lagged, with XLE (-1.11%) and XLB (-0.67%) the weakest. Among individual names, MDB (+22.10%) and TMC (+19.81%) were the top winners while SYM (-20.78%) and ALAB (-13.31%) were the largest decliners.

Macro highlights

Eurostat's flash HICP showed euro area annual inflation at 2.2% in November, up from 2.1%, a read investors treated as reinforcing services-driven core pressures and putting upward pressure on short-dated sovereign yields ahead of the ECB meeting. Japan's consumer confidence rose to 37.5 in November from 35.8, a stronger reading that left the Nikkei (NKY) effectively flat. Reports also flagged investor allocation to U.S. bonds at its lowest level since before the Global Financial Crisis, underscoring weak demand for fixed income and adding upward pressure on yields.

News that moved markets

Completed transactions included LAMY's acquisition of Exousia AI, Inc., Cellebrite's completion of its acquisition of Corellium, ZenaTech's closing of Smith Surveying Group, and Vero Fiber's acquisition of BendTel. Announced deals included Asurion's planned purchase of Domestic & General, Sequoia Financial Group's acquisition of Sterling Financial Group, Creative Planning's acquisition of Burt Wealth Advisors, and other announced transactions such as Captivision's planned purchase of a Montana Goldfields subsidiary and Cambium's acquisition of SHD Group.

Upcoming session watchlist

AU GDP Growth Rate QoQ (Q3) — forecast 0.6% vs 0.6% prior | Measures quarterly economic growth momentum and signals demand strength or weakness.
US ISM Services PMI (NOV) — consensus 52.1 vs 52.4 prior | Gauges services-sector activity and demand momentum that drive near-term growth.

Key Takeaways

US equities closed higher: the S&P 500 (SPX) rose and the Nasdaq outperformed after Technology and Industrials led sector gains across the session.
European markets were mixed following Eurostat's HICP rise to 2.2%, with the DAX gaining while the CAC 40 (FRA40) declined as short-dated yields rose.
Asia markets closed mixed: the Shanghai Composite slipped, the Hang Seng rose modestly, and the Nikkei finished effectively flat after improved Japanese consumer confidence.
Deal activity included multiple completed and announced transactions across tech and services, such as LAMY's acquisition of Exousia AI and Cellebrite's completion of Corellium.