Wall Street Rallies on Soft Inflation Data and Strong AI Demand from Micron

Market Performance and Inflation Data

• 📈 Wall Street indexes closed higher on Thursday, with the S&P 500 gaining 8/10en of 1% and the Nasdaq advancing about 1.4%.
• 📉 A soft inflation report, showing consumer prices increased less than expected year-over-year in November, fueled expectations for Federal Reserve interest rate cuts.
• ⚠️ The moderation in inflation may be partly due to technical reasons related to a government shutdown impacting data collection.

Tech Rally Fueled by Micron's AI Forecast

• 🚀 Micron Technology shares jumped 10% after forecasting quarterly profit at nearly double analyst expectations, driven by strong AI demand.
• 💡 Despite massive debt-backed AI spending and unclear profit paths, AI-related stocks are expected by some strategists to continue rising.
• 🎢 Volatility has been observed in some high-momentum technology stocks, data center, and software names, indicating a potential pullback within a broader uptrend.

Other Notable Stock Movements

• 💥 Trump Media and Technology surged approximately 42% following the announcement of a $6 billion all-stock merger with fusion power firm TAE Technologies.