Why Nasdaq is rising - Micron stock jumps 11% lifts Nasdaq

U.S. stocks jumped sharply on Thursday, staging a strong rebound after Wall Street’s tech-led selloff earlier this week. The Nasdaq Composite led gains as investors welcomed fresh signs that inflation pressures are easing, raising hopes that interest rate cuts could arrive sooner than expected.

The tech-heavy Nasdaq rose nearly 1.9%, powered by a rally in chipmakers and select mega-cap names. The S&P 500 climbed more than 1.3%, while the Dow Jones Industrial Average surged over 400 points. Markets reacted positively to a cooler-than-expected Consumer Price Index (CPI) report, which showed inflation continuing to slow in November.

Annual CPI inflation came in at 2.7%, while core inflation eased to 2.6%, both below economist forecasts. The data reinforced expectations that the Federal Reserve may soon pivot toward interest rate cuts, especially as cracks appear in the U.S. labor market.


At the same time, strong earnings from Micron Technology helped revive confidence in AI-driven tech demand. Investors also rotated back into beaten-down growth stocks after Wednesday’s sharp decline, lifting sentiment across Nasdaq-listed names.

With inflation cooling, earnings holding up, and rate-cut odds inching higher, Wall Street found reasons to buy again — especially in technology.

Nasdaq jumps as CPI inflation cools and rate cut hopes rise

The November CPI report was the key market catalyst. Headline inflation rose 2.7% year over year, while core prices increased 2.6%. Both readings undershot expectations and marked continued progress toward the Federal Reserve’s inflation target.

Following the report, traders slightly increased bets on a January rate cut. According to futures markets, the probability of a Fed cut next month rose to roughly 26.6%, up from 24% the previous day.

Fed Governor Chris Waller had already signaled openness to rate cuts earlier this week. That tone, combined with softer inflation data, helped calm markets after recent volatility.

Micron earnings spark tech rebound and lift chip stocks

Technology stocks led Thursday’s rally, driven by strong earnings from Micron Technology. The chipmaker forecast next-quarter profits nearly double analyst expectations, pointing to resilient AI-related demand.

Micron shares surged more than 10%, pulling up semiconductor peers including Nvidia, which rose nearly 2%. The results helped offset recent concerns about slowing tech investment after Oracle’s data center setback earlier this week.

The earnings surprise reassured investors that AI infrastructure spending remains intact, even as broader economic growth moderates.

Dow, S&P 500 rise as jobless claims stay stable

Beyond inflation, labor market data also supported the rally. Initial jobless claims fell to 224,000 for the week ended Dec. 13, down 13,000 from the prior week. Continuing claims edged higher, reflecting a mixed but cooling jobs picture.

While economists caution that recent data has been distorted by the government shutdown, markets interpreted the numbers as further evidence that the Fed can ease policy without reigniting inflation.

The Dow rose nearly 0.9%, while the S&P 500 advanced more than 1.3%, broadening the rally beyond tech.

Trump Media stock surges after $6 billion Tae Technologies deal

Trump Media & Technology Group shares jumped more than 30% after announcing a $6 billion merger agreement with Tae Technologies, a fusion energy firm backed by Alphabet and Chevron.

The deal is being viewed as a long-term bet on energy demand tied to AI growth. The stock surge added momentum to broader tech sentiment and boosted trading volumes across the Nasdaq.

With inflation easing, earnings stabilizing, and policy relief in sight, Thursday’s rally marked a decisive comeback for U.S. stocks — led once again by the Nasdaq.

Top gainers today

• Sable Offshore Corp. (SOC) surged 73.67% to $9.17 on heavy volume.
• Athira Pharma (ATHA) jumped 82.59% to $7.55 amid speculative buying.
• Trump Media & Technology Group (DJT) climbed 35.82% to $14.22 after deal news.
• Micron Technology (MU) rallied 10.89% to $250.08 following strong earnings guidance.
• Plug Power (PLUG) rose 8.84% to $2.35 as clean-energy stocks rebounded.
• Ondas Holdings (ONDS) advanced 8.87% to $8.02 on elevated trading interest.
• Tesla (TSLA) gained 3.74% to $484.74 as tech sentiment improved.
• Nvidia (NVDA) added 2.51% to $175.22, lifted by the semiconductor rally.