Nasdaq 100 and S&P500: Bullish Forecast as Softer CPI Fuels Tech Stocks Today

Stocks Climb on Softer CPI and Strong Micron Earnings

U.S. stocks advanced on Thursday as a cooler inflation print and upbeat semiconductor results improved the market’s forward outlook. By 15:27 GMT, the Dow rose 0.67%, the S&P 500 gained 1.14%, and the Nasdaq added 1.67%, reflecting renewed appetite for growth as traders reassessed conditions for the months ahead.

The delayed November CPI report showed headline inflation at 2.7% year over year and core inflation at 2.6%, both below forecasts of 3.1% and 3%. Despite missing month-over-month figures, investors treated the softer annual readings as a constructive sign for the inflation trend. Lighter-than-expected jobless claims further supported expectations that the Federal Reserve can proceed with policy easing in 2025 without jeopardizing labor stability.

Technically, the S&P 500 reclaimed the 50-day moving average at 6765.75, converting it into new support and setting up a potential test of the next pivot at 6831.60. Traders see clearance of that level as a gateway to stronger momentum into the final stretch of the year.

How Much Could Micron Shape Market Sentiment Going Forward?

Micron’s upbeat results helped reset expectations for AI-driven semiconductor demand. Shares climbed 9% after beating fiscal first-quarter estimates and guiding revenue higher. Management emphasized rapid growth in high-bandwidth memory, projecting the HBM market to reach $100 billion by 2028 with a 40% CAGR, and confirmed that supply is effectively sold out across multiple product cycles.

With capital expenditures raised to $20 billion from $18 billion, traders see Micron’s expansion as a forward-looking signal for sustained strength in AI-related infrastructure spending. The update positions semiconductors as a potential leadership group into early 2025.

What Broader Forces Are Shaping the Outlook?

UBS Global Wealth Management highlighted expectations for Fed easing, resilient economic conditions, and ongoing AI investment as supportive forces for global equities. The combination of softer inflation, steady labor data, and improving chip-sector earnings gives investors a constructive foundation for near-term risk exposure.

What Is the Short-Term Market Outlook?

Sentiment leans bullish as traders prepare for upcoming inflation and labor reports that will determine whether Thursday’s softer CPI marks the early stage of a sustained cooling trend. Strong AI-related demand signals from Micron, paired with the S&P 500’s recovery of the 50-day moving average, give the market room to extend higher if incoming data aligns with expectations.

In the near term, participants are likely to maintain or increase risk exposure, anticipating that easing inflation and steady enterprise spending in AI-linked sectors will support further gains into year-end and early 2025.

More Information in our Economic Calendar.