Sometimes the market just wants permission to feel good about itself. Thursday was one of those days.

Wall Street got a softer inflation print than expected, tech stocks got reassurance from Micron Technology (MU) that the AI boom isn't going anywhere, and suddenly risk appetite was back with a vengeance. By lunchtime in New York, screens were glowing green across trading desks.

The star of the show was the inflation data. The Consumer Price Index climbed 2.7% year-over-year in November 2025, cooling from 3% in October and coming in below the 3.1% consensus estimate. Even better, core inflation—which strips out the volatile food and energy components—dropped from 3% to 2.6% annually. That's the lowest core reading since March 2021, and it immediately revived chatter about potential rate cuts.

Markets loved it. By 12:30 p.m. in New York, all the major indices were solidly higher. The tech-heavy Nasdaq 100 led the charge with a 2.2% gain, a sharp reversal after Wednesday's 1.9% selloff.

Micron Delivers the Good News Tech Needed

But inflation wasn't the only catalyst. Micron Technology (MU) delivered a genuine blowout after the bell Wednesday, and the stock rocketed 13% higher Thursday as investors digested the results. The memory chip maker didn't just beat estimates—it issued bullish guidance tied to tight supply and strong pricing in high-bandwidth memory, the specialized chips that power AI infrastructure.

That news sent ripples across the semiconductor industry. The iShares Semiconductor ETF (SOXX) jumped 2.6%, snapping a four-session losing streak. After weeks of hand-wringing about whether AI spending would hold up, Micron's outlook gave investors something tangible to feel optimistic about.

Trump Media Soars on Fusion Power Bet

Speculative fervor also came roaring back. Trump Media & Technology Group (DJT) was the day's standout performer, surging 34% after announcing plans for a $6 billion merger with TAE Technologies, a fusion power company. The deal taps into the growing narrative around energy demand for AI infrastructure, and traders piled in.

Whether fusion power becomes a viable energy source anytime soon is anyone's guess, but Thursday was about momentum, not skepticism.

Bonds, Commodities, and Crypto React

The cooler inflation reading sent Treasury yields lower, with the 10-year benchmark dropping four basis points to 4.12%. Lower yields tend to boost equities, especially growth stocks, by making future earnings more attractive on a discounted cash flow basis.

In commodities, oil prices edged 0.9% higher to $56 a barrel, marking the second straight session of gains. Gold slipped 0.2% to $4,330 an ounce, while silver dropped 1.8% to $65.

Cryptocurrencies, oddly enough, mostly sat out the rally. Bitcoin (BTC) ticked up just 0.4% to $86,500, while Ethereum (ETH) gained 0.7% to $2,850. Despite the return of risk appetite in equities, digital assets didn't get much of a boost.

Thursday's Performance In Major U.S. Indices, ETFs

ETF Movers

According to market data:

• The Vanguard S&P 500 ETF (NYSE:VOO) rose 1.2% to $624.17.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) moved 0.7% higher to $483.88.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 2% to $612.47.
• The iShares Russell 2000 ETF (NYSE:IWM) rose 1.2% to $250.39.
• The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up 2.3%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged, down 1.3%.

Russell 1000's Top 5 Gainers and Losers On Thursday

Thursday's rally had all the ingredients: better-than-expected economic data, strong earnings from a bellwether tech company, and enough speculative energy to lift meme-adjacent stocks. Whether the momentum holds depends on what Friday brings, but for one day at least, bulls were firmly in control.