Stocks

US Stock Market Today: Dow Jones and NASDAQ Climb 0.5% as Fed Cautions on Near-Term Easing Amid CPI Data

US Stocks Rise as Traders Weigh Fed Signals and Year-End Positioning, with Caution on Rate Cuts

Written By : Kelvin Munene
Reviewed By : Manisha Sharma

The US stock market today rose early Friday, December 19, as traders weighed fresh Federal Reserve signals and year-end positioning. The Dow rose 0.54% to 48,210.37 around 9:35 a.m. ET. The S&P 500 gained 0.55% to 6,811.73. The NASDAQ climbed 0.69% to 23,165.18. Trading stayed orderly.

Investors entered the final trading stretch of 2025 with hopes for a late-December lift. However, several desks expected thinner participation ahead of the holiday week. This can amplify sharp moves without changing the broader trend.

US Stock Market Today: Fed Caution Tempers Rate-Cut Bets

New York Fed President John Williams said the Fed does not need to rush into further rate cuts. He also warned that technical issues and the 43-day government shutdown skewed recent inflation and employment data.

Thursday’s inflation report showed headline CPI at 2.7% year over year in November, down from 3.0% in September. However, missing October observations and delayed collection left gaps that economists said reduced reliability. Consequently, traders moderated expectations for near-term easing.

Rate traders still priced additional easing in 2026, but they tempered near-term conviction. LSEG data cited by Reuters showed bets for at least two quarter-point cuts next year. It showed an approximate chance of 24% cut in January. Williams said he wants more data before another move.

Wall Street Today: Holiday Liquidity and Options Expiry in Focus

Wall Street faced a major “triple witching” expiry, which often increases short-term volatility. Traders watched index levels closely because options and futures hedges can shift quickly during expiries.

At the same time, investors kept an eye on the so-called Santa rally window into early January. Reuters cited the Stock Trader’s Almanac. It pushes the average S&P 500 gain at 1.3% over that period since 1950. Even so, many portfolios kept position sizes modest into the holiday week.

Economic signals also offered a mixed backdrop for risk-taking. The University of Michigan’s final December sentiment reading came in at 52.9. It came in slightly below the preliminary estimate of 53.3. Treasury yields edged higher as traders reassessed the policy path after the Fed comments.

US Equity Movers: Oracle Rallies on TikTok Plan as Nike Drops

Technology shares led gains as chipmakers rebounded. AI-related optimism also returned, supported by Micron forecasts, according to Reuters. The S&P information technology sector outperformed on the session.

Oracle jumped after TikTok and ByteDance agreed to shift control of TikTok’s US operations into a new joint venture. Reports said the structure includes Oracle, Silver Lake, and Abu Dhabi-based MGX. The parties expect the deal to close on January 22, 2026.

Nike slid after it reported continued pressure on gross margins and flagged softer China demand. Reuters put the decline at about 10% after the update, while other reports linked the move to weaker China sales. The drop underscored how company results can still drive outsized moves, even in macro-led weeks.

Looking ahead, markets will track incoming data releases that arrive after the shutdown disruption fades. Many desks watched month-end rebalancing flows as they prepared for 2026 trading. Investors will also listen for more Fed guidance on whether policymakers hold rates steady in January. For now, the US stock market today stayed positive, but traders kept a cautious tone into 2026. 

Also Read: US Stock Market Today: Wall Street Rebounds as Cooling Inflation Revives Rate-Cut Expectations

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