Squawk on the Street Inflation Data Rally, Micron's Surge and the AI Trade, Trump Media Soars 12/18/25
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Dec 18, 2025 Markets are buzzing as inflation data came in cooler than expected, sparking a rally. Micron's stellar Q1 results bolster the AI trade, highlighting a memory supercycle. Trump Media's shares soar following a merger announcement, while debates swirl around OpenAI's valuation and potential fundraising. The hosts dive into rising heating costs and implications for the Fed, as well as Lululemon's board pressure due to Elliott's significant stake. Don't miss insights on supply constraints for AI expansion and the dynamic between high demand and limited resources.
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Cooling CPI Eases Fed Expectations
- CPI for October and November came in cooler than expected, with core annual inflation at its lowest since 2021.
- Markets priced in more Fed cuts for next year, lifting futures and risk assets.
Micron Signals Severe Memory Shortage
- Micron reported blowout earnings and guided to record revenue driven by AI-related demand.
- Management said they can only meet 50–67% of customer demand, creating upward pressure on memory prices.
Be Disciplined About Data Center Expansion
- Exercise discipline around data center spending and buildouts to avoid overcapacity and rising costs.
- Slow expansion until supply chains, power and equipment constraints are resolved.