U.S. stocks jumped on Thursday as investors welcomed a rally in technology shares, lifting all three major indexes. The tech-heavy Nasdaq Composite led gains, rising as optimism returned to the AI trade following a strong earnings report from Micron, while easing inflation data further boosted risk appetite.
The S&P 500 and Dow Jones Industrial Average also advanced as investors welcomed signs that price pressures are cooling. A softer-than-expected Consumer Price Index report reinforced hopes that the Federal Reserve may have more flexibility to cut interest rates in 2026, helping drive broad-based buying across equities.
Market Movers:
- Trump Media & Technology Group (DJT) +32%: Shares surged after the company announced plans to merge with nuclear fusion developer TAE Technologies in a deal valued at roughly $6 billion. Investors viewed the transaction as a long-term bet on energy demand tied to AI data centers and next-generation power infrastructure.
- Micron Technology (MU) +13%: Micron jumped after posting fiscal first-quarter results and forward guidance that significantly topped Wall Street expectations. The memory maker pointed to sustained AI-driven demand and projected a rapidly expanding high-bandwidth memory market through the second half of the decade.
- Lululemon Athletica (LULU) +7%: The stock climbed after reports that activist investor Elliott Investment Management has built a stake exceeding $1 billion. The move fueled speculation around leadership changes and potential strategic shifts as the apparel retailer works to reverse sluggish growth.
- Vision Marine Technologies (VMAR) -45%: Shares plunged after the company priced a deeply discounted public offering to raise fresh capital. The dilution-heavy deal raised concerns about liquidity and long-term funding needs.
- Insmed (INSM) -18%: The biotech stock tumbled after the company halted development of a drug candidate following disappointing Phase 2b trial results. Management said the treatment failed to meet both primary and secondary endpoints, prompting a strategic reassessment.
- Vistagen Therapeutics (VTGN) -6%: Shares extended losses after the company reported that a late-stage trial for its anxiety treatment missed its primary endpoint. The outcome raised doubts about the commercial viability of the therapy and the company’s pipeline momentum.
Inflation Data Reinforces Rate-Cut Optimism
Thursday’s rally was fueled by a cooler inflation reading that showed consumer prices rose 2.7% year over year in November, below expectations and down from earlier levels. The data reinforced confidence that inflation continues to ease, even as economists caution that recent government shutdown disruptions may have distorted some measurements. Still, markets interpreted the report as supportive of a more accommodative policy outlook. With labor market data showing signs of gradual cooling and price pressures moderating, investors increasingly believe the Fed may have room to ease further next year.
AI Confidence Rebuilds After Volatility
The rebound in technology stocks followed a volatile stretch for the AI trade, which had recently been pressured by concerns over rising capital expenditures and uncertain returns. Micron’s outlook helped counter those fears, suggesting demand for AI-related hardware remains strong and supply constraints could persist. Investors also rotated back into semiconductor and mega-cap tech names, seeing renewed opportunities after recent pullbacks. The move signaled that enthusiasm around AI has not disappeared, but may be entering a more selective phase.
Looking Ahead
Markets will remain focused on upcoming economic data, including labor and inflation updates, for confirmation that the disinflation trend remains intact. Investors are also watching whether momentum in AI-related earnings can continue to support tech leadership into year-end. As the final stretch of trading approaches, sentiment appears to be shifting toward cautious optimism, with cooling inflation and selective earnings strength helping offset lingering macro uncertainty.
