US stock futures moved sharply higher on Thursday after inflation came in cooler than expected and Micron Technology delivered strong earnings, helping revive confidence in the battered tech and AI trade.
Futures tied to the S&P 500 rose around 0.6–0.7%, while Nasdaq 100 futures climbed more than 1%. Dow futures gained about 180 points, signalling a rebound after several days of losses on Wall Street.
The boost came from the delayed November Consumer Price Index, which showed headline inflation at 2.7% year over year, well below forecasts of 3.1%. Core CPI, which excludes food and energy, also surprised to the downside at 2.6%, compared with expectations of 3.0%.
Although the data was released without the usual month-to-month comparisons due to disruptions from the recent US government shutdown, markets still reacted positively. Treasury yields fell, and rate-cut expectations firmed, as investors saw the report as a sign that inflation pressures are easing rather than re-accelerating.
Adding to the optimism, Micron Technology shares surged about 13% in premarket trading after the chipmaker beat Wall Street estimates and issued a strong revenue outlook. The results helped stabilize sentiment around the AI and semiconductor sector, which had been under heavy pressure in recent sessions.
Stocks are coming off a difficult stretch. The S&P 500 and Dow logged four straight losing days, while the Nasdaq fell nearly 2% on Wednesday, dragged down by sharp declines in Oracle, Nvidia, Broadcom, and other AI-linked names amid concerns about rising capital spending and data-center costs.
Despite the recent pullback, strategists note the broader context remains constructive. Technology stocks are still up roughly 20% for the year, and some investors see the latest move as a reset rather than the end of the AI-driven rally.
As one strategist put it, “Some air is coming out of the balloon, but the market is holding up surprisingly well.”
Markets will now turn their focus to upcoming Fed signals and additional economic data to assess whether softer inflation can translate into interest rate cuts in 2026, or if policymakers will remain cautious despite the improving price picture.
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