US stock indices rose as semiconductor stocks like Taiwan Semiconductor Manufacturing Company (TSM, Financial), Broadcom (AVGO), and NVIDIA (NVDA) led gains. Despite inflation cooling, it remains above the Federal Reserve's 2% target. The Fed's key inflation measure, the core PCE price index, increased 0.1% from the previous month, the smallest rise since May. The Fed lowered rates last week but anticipates only marginal cuts until 2025.
The US Trade Representative announced a 301 investigation into Chinese-made semiconductors, leaving tariff decisions to the next administration. The Fed plans significant changes to annual "stress tests" for major banks to enhance transparency.
Tech giants in the NYSE FANG+ index saw mixed performances. Meta (META) increased 2.49% on news of upgraded smart glasses, while Microsoft (MSFT) fell 0.31%. Qualcomm (QCOM) won a patent lawsuit against ARM, rising 3.50%.
Analysts expect a "Santa Claus rally" to boost markets toward the year's end, with historical gains during the last five trading days of the year. The US stock market will close early on December 24.
