Tech Stocks Surge on Hopeful Inflation Data

Major U.S. stock indexes concluded their losing streaks on Thursday, with the S&P 500 and Dow Jones Industrial Average both posting gains. The Nasdaq Composite also advanced, recovering previous losses, driven by positive sentiment following a cooler-than-expected November consumer price index report. This inflation data, showing a 2.7% year-over-year increase, has fueled investor optimism that the Federal Reserve might lower interest rates in 2026.

Tech stocks and semiconductor companies experienced a significant uplift throughout the trading day. Micron Technology's strong revenue guidance for the current quarter, citing demand exceeding supply, reassured the market and countered recent anxieties surrounding the artificial intelligence trade. All components of the 'Magnificent Seven' group concluded Thursday trading in positive territory.

Looking ahead, Friday is anticipated to bring volatile market activity due to "quadruple witching," when options on four types of securities expire. This event represents the largest options expiration on record, with over $7.1 trillion in notional exposure. Meanwhile, strategists suggest that a combination of monetary easing, fiscal policy, and AI spending could create a more favorable macro environment in 2026, potentially extending equity rallies beyond current AI leaders.