US Stocks Surge After Inflation Report, Micron Leads/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets surged Thursday after a softer-than-expected inflation report sparked optimism about potential Fed rate cuts. Tech and AI stocks, led by Micron’s strong earnings, rebounded sharply. The S&P 500 posted its best single-day gain in three weeks.
US Market Rebound: Quick Looks
- Inflation eased to 2.7%, below forecasts, sparking investor optimism.
- S&P 500 jumped 1.2%, snapping a four-day losing streak.
- Nasdaq surged 1.7%, driven by tech and AI recovery.
- Dow Jones rose 330 points, or 0.7%, as of 10:30 a.m. ET.
- Micron Technology stock soared 12.9% after beating earnings expectations.
- AI-related stocks including Nvidia (+2.5%), Oracle (+2.6%), and Broadcom (+0.7%) rallied.
- Trump Media & Technology Group surged 35.6% after announcing a nuclear power merger.
- Cintas rose 2.4%, beating earnings and launching a $1B buyback.
- Darden Restaurants gained 2.6%, with revenue outpacing estimates.
- Treasury yields dipped to 4.11%, reflecting inflation optimism.
- European markets rose following central bank decisions.
- Asian markets showed mixed results, with South Korea falling.
Deep Look
U.S. Stocks Soar as Inflation Slows and Micron Ignites Tech Rebound
NEW YORK — Wall Street rallied on Thursday after an encouraging report showed U.S. inflation slowed in November, a development that bolstered hopes the Federal Reserve may continue cutting interest rates in 2026.
The S&P 500 jumped 1.2%, poised for its best day in nearly a month, while the Nasdaq Composite surged 1.7%, led by tech giants. The Dow Jones Industrial Average rose 330 points (0.7%) by mid-morning.
The catalyst? A government report showing that consumer prices rose 2.7% year-over-year last month — cooler than many economists had anticipated. Although still above the Fed’s 2% inflation target, the data suggested inflationary pressure may be easing.
This potential shift in economic momentum has investors hopeful that the Federal Reserve could maintain its rate-cutting trajectory next year. Lower rates generally lift stock prices by reducing borrowing costs and increasing consumer and business spending.
Micron Sparks AI Sector Revival
Among the day’s standout performers was Micron Technology, which surged 12.9% after releasing better-than-expected quarterly earnings. The chipmaker also offered an optimistic forecast for future revenue, citing strong demand across its business segments and its role as an “AI enabler” — a key narrative fueling investor enthusiasm.
CEO Sanjay Mehrotra noted robust profitability across Micron’s divisions, and his bullish outlook helped halt the recent slide in AI and semiconductor stocks.
Stocks like Nvidia (+2.5%), Oracle (+2.6%), and Broadcom (+0.7%) also bounced back after recent declines. Despite solid earnings, these companies had faced investor concerns over whether soaring investments in AI would yield sufficient long-term returns.
Micron’s upbeat results and leadership tone reassured traders that AI investments are delivering real gains — for now.
Trump Media Surges on Nuclear Deal
A surprising mover on Thursday was Trump Media & Technology Group, which jumped 35.6% despite steep losses earlier in the year. The company, known for its Truth Social platform and expansion into cryptocurrency, made headlines with a planned merger with TAE Technologies, a nuclear fusion company.
The all-stock deal will see both companies share ownership in a combined venture focused on developing commercial nuclear fusion reactors — a futuristic energy source that mimics the sun’s power. The move signals Trump Media’s ambitions beyond social media, as it leverages its visibility and fundraising power for more diverse ventures.
Earnings Boost Broader Market
Beyond tech and AI, other notable earnings reports contributed to the market’s positive tone:
- Cintas, the workplace uniform and cleaning supply company, rose 2.4% after exceeding profit expectations and announcing a $1 billion stock buyback program.
- Darden Restaurants (parent of Olive Garden and LongHorn Steakhouse) climbed 2.6%, with revenue beating forecasts thanks to both new openings and strong performance at existing locations — despite a slight profit miss.
- CarMax fluctuated but edged up 0.1% after better-than-expected profit numbers. However, the company warned of potential margin pressures in used car sales and said it would increase marketing spending to remain competitive.
Global Markets and Bond Yields React
Overseas, European markets advanced after the Bank of England cut its interest rate and the European Central Bank held steady:
- London’s FTSE 100 gained 0.3%
- France’s CAC 40 added 0.5%
- Germany’s DAX rose 0.5%
In Asia, the results were mixed:
- Shanghai Composite edged up 0.2%
- South Korea’s Kospi fell 1.5%
Meanwhile, the U.S. bond market reacted positively to the inflation news. The 10-year Treasury yield fell to 4.11% from 4.16% a day earlier — a sign that investors expect slower inflation and potentially more accommodative Fed policy ahead.
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