Tech Surge Sparks Wall Street Rally Amid Lower Inflation Expectations

Wall Street's main indices soared on Thursday as softer inflation figures kept potential Federal Reserve rate cuts on the table. Tech giant Micron's robust forecast buoyed the tech sector, easing valuation concerns. Despite economic data uncertainties, investor sentiment remained strong, with AI demand driving tech gains.

Wall Street's major indices experienced a significant rally on Thursday, fueled by softer-than-expected inflation data that maintained the possibility of Federal Reserve interest rate cuts. This sentiment was further bolstered by chipmaker Micron, which alleviated some concerns about tech sector valuations with a promising forecast.

November's consumer prices rose less than anticipated, prompting analysis of potential adjustments due to the lack of October's data, as highlighted by Art Hogan from B. Riley Wealth. Despite concerns over possible distortion in the data, signs of stability in the labor market reassured investors.

Key indices such as the Russell 2000, Dow Jones, S&P 500, and Nasdaq all saw gains. Tech stocks, particularly those related to AI, were at the forefront of the surge. Notable movements included Micron's 15.5% rise and various acquisitions and agreements in the corporate sector, signaling a dynamic market environment.

(With inputs from agencies.)