Stocks rallied yesterday as softer inflation data hit the tape, but Nike’s latest report raises fresh questions about global demand.
Markets Bounce Yesterday
Markets bounced strongly yesterday as broad indices regained key technical ground following recent pressure. The SPY climbed about 0.76%, while the QQQ was up 1.46% with cyclical and tech sectors leading the rebound… signaling buyers stepped in at support after oversold conditions.
Tech and high-momentum ETFs lagged modestly, but the overall move showed a rotation into value and yield-sensitive areas as traders interpreted softer inflation data as supportive for easing monetary policy.
CPI Report Comes in Cool
The November CPI headline came in at 2.7%, below the 3.1% expected and down from ~3.0% previously, indicating inflation pressures are easing more quickly than anticipated.
Source: https://x.com/WarrenPies/status/2001651953080906047?s=20
Core inflation (excluding food and energy) also softened, with shelter and other key categories rising more slowly than forecast, pointing to broader moderation. Combined with mixed labor market signals, these figures reinforce the case that price pressures are moving closer to the Fed’s target — tightening the path for future rate decisions.
Nike Earnings Disappoint, China Weakness Weighs
Nike reported earnings that beat modestly but shares fell more than 10% after hours, reflecting deep concerns about growth and profitability. Revenue came in at about $12.4 billion with earnings of $0.53 per share, above expectations, but the China business saw a roughly 17% sales decline YoY significantly dragging on results.
Management described the turnaround as still in the “middle innings,” with inventory challenges and weak store traffic in Greater China adding pressure. Margins also contracted as tariffs and promotional activity weighed on profitability, reinforcing investor caution as global demand outside North America remains uneven.
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