Inflation Eases, AI Demand Boosts Wall Street Gains

Wall Street indexes rose as inflation reports suggested interest rate cuts by the Federal Reserve may be on the horizon. Strong AI demand indicated by Micron's forecast also contributed to gains. Consumer discretionary and tech stocks led the rise, while labor market reports showed stability.

In a pivotal session on Thursday, Wall Street's major indexes witnessed an upward trajectory following the release of a light inflation report. This data spurred anticipations of forthcoming interest rate reductions by the Federal Reserve, while chipmaker giant Micron highlighted escalating demand for AI technology.

The Consumer Price Index revealed a lesser-than-expected rise in consumer prices over the past year until November. Accompanying the economic landscape was a jobless claims report showing a decline in new applications, balancing labor market conditions towards stability.

Further fueling the optimism, the Dow Jones Industrial Average and Nasdaq Composite saw significant gains, alongside a spike in consumer discretionary and tech stocks. Notably, Micron Technology surged over 10%, capitalizing on robust artificial intelligence demand.

(With inputs from agencies.)