Wall Street Climbs Amid Soft Inflation and AI Surge

Wall Street's major indexes rose after a soft inflation report fueled expectations for Federal Reserve rate cuts, and strong AI demand boosted stocks like Micron. A favorable Consumer Price Index suggested less pressure on policymakers, while stable labor conditions and bullish tech stocks contributed to market gains.

Wall Street saw gains on Thursday as a softer-than-expected inflation report increased the likelihood of interest rate cuts by the Federal Reserve, while chipmaker Micron's optimistic forecast highlighted strong AI demand.

The Consumer Price Index, delayed due to a government shutdown, indicated lower-than-anticipated price increases. This prompted speculation that the Federal Reserve may feel less pressured to act aggressively on rate cuts next year, as per Bill Merz, head of capital markets research at U.S. Bank's Asset Management Group.

In economic indicators, jobless claims declined last week, suggesting stable labor markets, while major indexes such as the Dow, S&P 500, and Nasdaq all posted notable gains. Tech stocks soared with Micron leading after announcing AI-related profit predictions, and sectors led by consumer discretionary experienced significant advances.

(With inputs from agencies.)