Wall St closes higher fueled by tech rally, soft inflation data
Affected assets and topics
Why it matters
Wall Street's main indexes closed higher, driven by a tech rally and soft inflation data that raised expectations for interest rate cuts by the Federal Reserve. Notably, Micron Technology's strong earnings forecast boosted tech stocks, while Trump Media & Technology surged 42% following a merger announcement. Overall, the market sentiment is optimistic, particularly in the tech sector.
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Expected market reaction
Market impact analysis based on bullish sentiment with 85% confidence.
Evidence trail
Evidence
AI provenance
Technical identifiers
- Provider tag
- openai-gpt-4o-mini
- Analysis version
- openai-gpt-4o-mini
- Article id
- 24371
Original source
STORY: Wall Street's main indexes climbed on Thursday with the Dow edging up marginally, the S&P 500 adding eight tenths of one percent and the Nasdaq advancing about one point four percent.A soft inflation report fueled expectations for more interest rate cuts by the Federal Reserve.The Consumer Price Index report showed that consumer prices increased less than expected from a year earlier in November.The moderation is likely due to technical reasons related to the government shutdown which prevented the collection of some data.Meanwhile, a blowout forecast from chipmaker Micron Technology helped lift tech stocks on Thursday.Micron shares jumped 10% after the company forecast quarterly profit at nearly double what analysts were expecting on strong AI demand.It comes as massive debt-backed AI spending and unclear paths to profits have dampened risk-taking this quarter.But Rob Sluymer, technical strategist with RBC Wealth Management, says he thinks AI-related stocks will continue to rise."So I think people are a little bit more nervous around some of the gains in these high momentum, expensive technology stocks. And I think that's why we've seen some volatility in some of the names, some of the data center stocks and software names that have pulled back very, very sharply. People are taking some of that risk down. Now, again, this is just the first pullback in an otherwise strong uptrend. I think it's pretty early to be making a case that these tech stocks are putting in a big top.":: TAE TechnologiesOther stocks on the move included Trump Media & Technology which surged roughly 42% after the company announced a merger with fusion power firm TAE Technologies in an all-stock deal valued at more than $6 billion.
Read the full article on Yahoo Finance
Original article published by Yahoo Finance on December 19, 2025. Analysis and insights provided by AnalystMarkets AI.