Big Tech Stocks Today: Magnificent Seven Rally Near Noon ET as Soft Inflation and AI Demand Reset the Narrative

Big Tech stocks are back in control of the tape around 12:00 p.m. ET on Thursday, December 18, 2025, with investors leaning into a familiar late-cycle trade: cooler inflation → lower yields → higher-growth tech.

After Wednesday’s sharp pullback on renewed “AI bubble” chatter, the Magnificent Seven are broadly higher in midday trading, helped by a one-two catalyst punch: a benign inflation print (with important caveats tied to the recent U.S. government shutdown) and a fresh confirmation of AI hardware demand after Micron’s blowout results and guidance. ^[1]

Big Tech at ~Noon ET: The Magnificent Seven are green again

As of late-morning trading (the latest available prints just before noon ET), the Mag 7 are mostly higher:

Apple (AAPL): $273.13, +0.48%
Microsoft (MSFT): $488.86, +2.68%
Amazon (AMZN): $228.39, +3.22%
Alphabet (GOOGL): $302.70, +2.02%
Meta (META): $668.07, +2.86%
Nvidia (NVDA): $175.60, +2.73%
Tesla (TSLA): $489.28, +4.71%

That leadership is showing up at the index level too. In late-morning action, Nasdaq was up roughly ~2%, with the S&P 500 up about ~1.4% and the Dow about ~1%, per live market coverage around 11:12 a.m. ET. ^[2]

The macro driver: inflation “cools,” but the data has a big asterisk

Today’s market tone is anchored by the delayed November Consumer Price Index release:

Headline CPI: +2.7% year over year (below expectations)
Core CPI (ex-food and energy): +2.6% year over year (also below expectations)

But here’s the nuance that matters for Big Tech valuations: no month-to-month inflation rates were published because the 43-day government shutdown disrupted data collection, and the October CPI release was canceled. In other words, the year-over-year number was “good,” yet investors and policymakers have less clarity about the near-term trend. ^[3]

Even so, the bond market reacted in the way Big Tech bulls typically want: the 10-year Treasury yield eased to around ~4.12% in late-morning coverage—supportive for long-duration growth stocks. ^[4]

Policy context is also important: Reuters notes the Fed cut rates by 25 bps last week to a 3.50%–3.75% range, while signaling it may be cautious about moving quickly again amid uncertainty around inflation and labor-market signals (also complicated by the shutdown’s data gaps). ^[5]

The market driver: AI hardware demand gets a “reality check” in a good way

If inflation set the stage, AI demand delivered the plot twist that turned a fragile rebound into a broader tech bid.

Micron’s results revive confidence in AI infrastructure spending

Micron’s earnings and forward outlook landed as a direct rebuttal to the midweek fear that AI capex is about to roll over. In premarket and early trading coverage, Micron surged on results that beat expectations and guidance that implied robust demand—especially tied to data centers and AI hardware. ^[6]

Barron’s highlights Micron’s role in high-bandwidth memory (HBM)—critical for AI servers—and notes management flagged continued demand strength (with supply constraints a recurring theme). ^[7]

Nvidia and “AI fear” unwind

With that backdrop, Nvidia is participating in the rebound, with Barron’s pointing to Micron’s data-center signal as a key factor helping “shake off” the latest AI spending anxiety. ^[8]

This is the market’s current tug-of-war in a single day:

Fear: “AI spending is too big, too fast, and could disappoint.”
Counterpoint: “Demand remains strong enough that the supply chain is still tight in key components.”

On December 18, the counterpoint is winning—at least so far.

The “Santa rally” question: is Big Tech leadership fading or just pausing?

Not everyone is ready to declare the coast clear for mega-cap tech into year-end.

A widely circulated theme this morning: rotation away from the Magnificent Seven into the broader market could make a classic year-end “Santa Claus rally” harder to sustain. Yardeni Research argues that the Mag 7 may be entering a correction-like phase as investors weigh whether heavy AI spending pressures free cash flow and slows earnings growth, while the rest of the market looks cheaper on some valuation measures. ^[9]

The key implication for Big Tech investors: even on an “up” day, the market is increasingly selective about which AI exposure it wants (platform winners vs. crowded infrastructure trades vs. second-derivative beneficiaries).

Company headlines moving Big Tech today

Apple: AI optimism meets regulatory pressure (Japan)

Apple has two storylines in the market today:

Regulatory shift in Japan: Apple said it has opened iPhones to alternative app stores in Japan to comply with new competition rules. Reuters reports Japanese developers may be able to pay Apple as little as 5% on sales made through alternative marketplaces, and developers can offer their own in-app payments (with commissions still applying). ^[10]
2026 AI upside narrative: Morgan Stanley raised its Apple price target to $315 and framed Apple as potentially moving from an “AI laggard” toward a leadership position in 2026, with attention on a major Siri upgrade cycle and Apple Intelligence-driven upgrades. ^[11]

Together, it’s a classic Apple setup: platform/regulatory margin headwinds on one side, and a device ecosystem + services leverage story on the other.

Microsoft: OpenAI fundraising chatter and the cost of staying “frontier”

Microsoft is trading strongly with the rest of Big Tech, and today’s AI headlines underline both the opportunity and the cost:

Reuters reports OpenAI has discussed raising up to $100 billion at a valuation around $750 billion, highlighting how quickly the AI capital cycle is escalating—and by extension, how much compute demand the ecosystem may continue to absorb. ^[12]
Separately, Microsoft AI CEO Mustafa Suleyman said staying competitive at the frontier could cost “hundreds of billions” over the next 5–10 years—language that reinforces why investors keep toggling between “AI is inevitable” and “AI is expensive.” ^[13]

Amazon and Alphabet: policy risk enters the shareholder conversation

A Reuters exclusive adds a fresh, policy-driven risk angle for large employers in tech and adjacent sectors:

A union-aligned investment group sent letters to Amazon and Alphabet (among others), asking how U.S. immigration policies—particularly changes affecting skilled-worker visas—could impact finances, staffing, and supply chains. ^[14]

At the same time, another Reuters item touches the hyperscaler buildout narrative: Fermi denied a report tying Amazon to a stalled project as a prospective tenant. Even as details vary deal-by-deal, the common thread is that data-center expansion and AI infrastructure planning remain under constant scrutiny. ^[15]

Meta: bullish targets and an AI talent/capital signal

Meta is higher with the group today, and two headlines stand out:

Bank of America maintained a price target of $810 on Meta, citing AI potential, according to a published analyst note. ^[16]
Reuters also reported on a market signal from the AI research ecosystem around Meta—another reminder that AI investment isn’t only GPUs and data centers; it’s also a global contest for talent and capital. ^[17]

Tesla: “AI stock” volatility cuts both ways

Tesla’s midday strength is notable because it illustrates the market’s current habit of trading TSLA as both:

an EV/transport story and
an AI autonomy story that gets swept into broader “AI risk-on / risk-off” moves.

Barron’s frames Tesla’s rebound as part of the broader “AI selloff reversal,” arguing the prior day’s fear trade didn’t fully square with how more efficient AI chips and sustained AI investment could ultimately benefit Tesla’s autonomy ambitions. ^[18]

What traders and investors are watching next today

With Big Tech back in the driver’s seat near noon ET, the next tests are straightforward:

Rates and the dollar: If yields keep easing, the “duration bid” in mega-cap tech can persist.
AI capex confidence: Micron helped today; the next question is whether enterprise tech, cloud, and chip names keep confirming demand without spooking investors on spend.
Year-end positioning: If rotation accelerates, Big Tech can still rise—but may do so with more dispersion (winners vs. “expensive passengers”).

For the broader macro calendar, markets are also looking ahead to additional U.S. data prints that could influence rates and risk appetite into the close and into Friday. ^[19]

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