MARKET SNAPSHOT

U.S. stocks rose, but ended well below session highs, after a key inflation report eased unexpectedly in November. Treasury yields moved lower and the dollar slipped. Oil added to gains on Russia-Ukraine and U.S.-Venezuela tensions, while gold slipped.

MARKET WRAPS

EQUITIES

U.S. stocks jumped Thursday, snapping a recent losing streak after an encouraging readout on inflation.

The Nasdaq composite led gains, rising around 1.4%. The Dow edged up 0.1%, while the S&P 500 advanced 0.8%, with both benchmarks breaking a run of four straight declines.

The delayed consumer-price index for November showed prices rose 2.7% in the past 12 months, slowing from a 3% rate in September and considerably below consensus forecasts. Economists polled by The Wall Street Journal had expected a 3.1% rate.

Excluding volatile food and energy prices, the core rate stood at 2.6%, also slower than expected. That was the lowest core inflation reading since early 2021, before a pandemic-era spike that took this rate above 6%.

However, economists cautioned against reading too much into the report due to gaps in data collection during the government shutdown. The stoppage meant there was no October CPI report.

Asian stocks were mixed on Thursday.

In China, the Shanghai Composite Index ended 0.2% higher, while the Shenzhen Composite and the ChiNext Prince Index fell 0.7% and 2.2%, respectively.

Hong Kong's Hang Seng Index rose 0.1%.

Stocks in Japan fell, with the Nikkei Stock Average closing 1.0% lower.

Australia's S&P/ASX 200 Benchmark Index closed flat.

In New Zealand, the S&P/NZX 50 Index declined 0.3%.

COMMODITIES

Oil futures added modestly to Wednesday's gains with market focus on efforts toward a Russia-Ukraine peace agreement and stepped up U.S. actions against Venezuela.

The U.S. blockade of sanctioned tankers in or out of Venezuela "sends a strong message to the market that the United States is prepared to use more stringent tools in managing the energy and sanctions file," Rania Gule of XS.com said.

The psychological dimension "is no less important than the quantitative impact, as traders often price in future risks before they materialize," she said. It should provide support for crude prices "as long as escalation risks remain on the table."

WTI settled up 0.4% at $56.15 a barrel and Brent rose 0.2% to $59.82.

Front month gold settled 0.2% lower to $4339.50, down two of the past three sessions. Silver fell 2.5% to $64.59.

TODAY'S TOP HEADLINES

Inflation Eased to 2.7% in Report Distorted by Government Shutdown

Inflation eased unexpectedly in November, but economists cautioned against reading too much into the report because of gaps in data collection during the long government shutdown.

The government's closure made it impossible for Labor Department workers to collect some of the data they normally would have to compile the report on the consumer-price index. Even before the release, economists warned that technical workarounds that the agency used to deal with the collection issues may have biased the November figure downward, causing inflation to be understated.

The Thursday report, which was released later than normal because of the shutdown, said that consumer prices rose 2.7% in November from a year earlier. That was down from 3% in September and lower than the 3.1% forecast by economists polled by The Wall Street Journal.

Trump Orders Cannabis to Be Reclassified as Less Dangerous Drug

President Trump directed the federal government to reclassify cannabis as a less-dangerous drug, a seismic shift in U.S. drug policy that is poised to boost the legal marijuana industry.

The president signed an executive order Thursday calling for Attorney General Pam Bondi to expedite the rescheduling of cannabis to a less-restrictive category. Senior administration officials said the move aimed to expand medical research into cannabis applications, including medical marijuana and CBD.

The move doesn't legalize cannabis federally, and wouldn't directly resolve banking challenges for marijuana businesses. But it would open the door for medical research that was previously stymied by pot's stringent drug classification.

Nike Sales Tick Up, But China Weakness Persists

Nike recorded a slight uptick in sales during the fiscal second quarter as it continues its turnaround efforts, though weakness in its China business persisted.

The footwear and apparel company on Thursday posted a profit of $792 million, or 53 cents a share, in the quarter ended Nov. 30, compared with $1.16 billion, or 78 cents a share, a year earlier. Analysts expected 39 cents a share, according to FactSet.

Revenue rose 0.6% to $12.43 billion. Analysts surveyed by FactSet forecast revenue of $12.21 billion.

FedEx's Earnings Were Strong. Cost Cuts and Shipment Volume Helped.

A lot is going on at FedEx, so the stakes were high for its second-quarter results, reported Thursday evening. Investors were looking for solid results amid trade uncertainty and weak shipping markets amid the peak shipping season, and the company delivered.

For the fiscal second quarter, FedEx reported adjusted earnings per share of $4.82 from sales of $23.5 billion. Wall Street was looking for EPS of $4.12, from $22.8 billion in sales.

"FedEx delivered an outstanding second quarter as we successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment," said Raj Subramaniam, FedEx CEO, in a news release. "I am extremely proud of our team members worldwide for their commitment to make every FedEx experience outstanding this Peak season."

Trump Media to Merge With Nuclear Fusion Firm in $6 Billion Deal

Trump Media & Technology Group agreed to merge with an Alphabet-backed fusion energy company in a merger valued at $6 billion, seeking to capitalize on the artificial-intelligence boom's growing power requirements.

The all-stock transaction for TAE Technologies values each share of TAE stock at $53.89, but TAE is a privately held company, making the total value of its portion of the deal unclear. Trump Media, which has a market capitalization of around $2.9 billion, would provide $200 million in cash to TAE at the deal's closing, expected in mid-2026, the company said.

The deal combines Trump Media's "access to significant capital" and TAE's "leading fusion technology" to supply power for AI technology, the companies said in a statement Thursday.