Micron-led chip rally
Key Points
- Micron's fiscal Q1 beat and very strong guidance triggered a re-pricing of memory-chip equities and lifted semiconductors and large-cap tech.
- The ECB held key rates and upgraded near-term growth and inflation projections, which markets read as lowering odds of near-term cuts and pressuring short-dated sovereign yields.
- The Bank of England cut Bank Rate after a close vote, citing slower CPI and softer labour data, which prompted intraday FTSE weakness and gilt repricing.
- Accenture's fiscal Q1 beat and advanced AI bookings supported IT-services sentiment and produced premarket strength in related names.
Global Market Summary
US equities advanced as Micron's results and guidance re‐priced memory names: the S&P 500 (SPX) rose 1.04%, the Nasdaq Composite (^IXIC) gained 1.66% and the Dow (DJIA) added 0.37%. European markets climbed after the ECB left key rates unchanged and revised up near‐term growth projections, with the DAX (DAX) +1.00%, CAC (FRA40) +0.80% and FTSE 100 (UKX) +0.65%. Asia was mixed, with Shanghai (000001.SS) +0.16% and the Hang Seng (HSI) +0.12% while the Nikkei (NKY) fell 1.03%.
Top Movers
Semiconductors and large‐cap tech led sector gains after company-specific upside: Micron (MU) +11.68%, Invesco VGT (VGT) +1.74% and Consumer Discretionary ETF XLY +1.91%; Energy ETF XLE lagged, down 1.40%. Notable stock movers included Rivian (RIVN) +15.27% and Trump Media tickers DJTWW +70.20% / DJT +44.39%, while Inspire Medical (INSP) -19.83% and Insmed (INSM) -16.77% were among the largest decliners.
Macro highlights
The ECB held its three key rates and upgraded near‐term growth and inflation projections, a combination markets read as lowering the odds of near‐term cuts and supporting euro‐area equities while pressuring short‐dated sovereign yields. The Bank of England cut Bank Rate 25bps to 3.75% after a 5‐4 vote, citing slower CPI and softer labour market data, which prompted intraday weakness in the FTSE and gilt repricing. Taiwan's central bank held policy rates and published a November financial conditions report showing a pickup in M2, consistent with ample domestic liquidity and limited near‐term upward pressure on short‐term rates.
News that moved markets
Micron's fiscal Q1 beat and very strong guidance—reporting about $13.64 billion in revenue and guiding to a roughly $18.7 billion Q1 midpoint while raising capex plans—triggered a re‐pricing of memory‐chip equities and lifted MU and peers. Accenture's fiscal Q1 beat with $18.7 billion in revenue, $3.94 adjusted EPS and $2.2 billion in advanced AI bookings supported IT‐services sentiment and premarket strength in related names. Cygnet Energy and Kiwetinohk Energy completed their arrangement, and Blum Holdings closed its acquisition of a high‐volume Bay Area cannabis retail dispensary. Announced transactions included LandGate's acquisition of Topos, the Boatsetter–Getmyboat merger, REALM's Portland building purchase, StorageVault's asset purchases and corporate buys such as HCLTech's acquisition of HPE's telco solutions business and Zendesk's acquisition of Unleash.
Upcoming session watchlist
- JP BoJ Interest Rate Decision — consensus 0.75% vs 0.5% prior, Dec 19, 03:00 AM | Determines BoJ policy rate and affects domestic borrowing costs.
- DE GfK Consumer Confidence (JAN) — consensus -23.3 vs -23.2 prior, Dec 19, 07:00 AM | Signals household confidence and likely consumer spending trends.
- GB Retail Sales MoM (NOV) — forecast 0.4% vs -1.1% prior, Dec 19, 07:00 AM | Indicates retail demand and near-term consumer spending momentum.
- US Existing Home Sales (NOV) — consensus 4.1M vs 4.1M prior, Dec 19, 03:00 PM | Reflects housing demand and near-term mortgage market activity.
Key Takeaways
- US equities advanced after Micron's beat and guidance re-priced memory names, driving gains in semiconductors and large-cap tech while benchmarks closed higher.
- European markets climbed after the ECB left key rates unchanged and revised up near-term growth, while the Bank of England cut prompted intraday FTSE weakness and gilt repricing.
- Semiconductors and large-cap tech led sector gains; Energy lagged, and individual stocks displayed wide dispersion among top movers and decliners.
- Deal activity included completed and announced transactions across energy, retail and tech, contributing to selective stock moves and acquisition-driven share reactions.
References
- 1. https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.mp251218~58b0e415a6.en.html
- 2. https://www.cnbc.com/2025/12/17/micron-q1-earnings-forecast-memory-demand-ai.html
- 3. https://www.schwab.com/learn/story/stock-market-update-open
- 4. https://x.com/ecb/status/2001646130501947801
- 5. https://x.com/BIS_org/status/2001579462492569777
- 6. https://www.cbc.gov.tw/en/cp-448-189518-553d0-2.html
- 7. https://www.cbc.gov.tw/en/cp-448-189504-7edf4-2.html
- 8. https://www.gov.uk/government/publications/open-letters-between-hm-treasury-and-bank-of-england-december-2025
- 9. https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/december-2025
- 10. https://x.com/ecb/status/2001642541545066911
- 11. https://x.com/ecb/status/2001652273571832191
- 12. https://x.com/ecb/status/2001651857073332539
- 13. https://x.com/ecb/status/2001668460728775055
- 14. https://x.com/ecb/status/2001671034106196293
- 15. https://x.com/BIS_org/status/2001631303909679127
- 16. https://x.com/ecb/status/2001593294162149397
- 17. https://x.com/ecb/status/2001693556445270291
- 18. https://x.com/PeterLBrandt/status/2001630178221658614
- 19. https://x.com/WhiteHouse/status/2001482880879595806
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