Nasdaq Index: Micron Soars 9% as Traders Bet on Fed Cut, Boosting US Stock Market

S&P 500 Hits Record High as Traders Brush Off Hotter CPI Print

Stocks rose Thursday, with the S&P 500 setting a fresh intraday record, as traders showed confidence that a slightly hotter August inflation reading wouldn’t prevent a Federal Reserve rate cut next week. The benchmark index climbed 0.35% to 6,555.01, while the Dow Jones Industrial Average gained 286 points. The Nasdaq Composite edged up 0.27%, led by strong performances in select tech names.

The August consumer price index rose 0.4% month-over-month, topping the 0.3% estimate, but the annual reading of 2.9% was right on target. Core CPI—excluding food and energy—matched expectations at 0.3% for the month and 3.1% year-over-year. Combined with a surprise drop in producer prices and a jump in weekly jobless claims, the inflation data reinforced bets that the Fed will ease rates by 25 basis points on September 17.

Will the Federal Reserve Move Forward With a Rate Cut?

Despite mixed inflation data, Fed funds futures pricing suggests traders still see a quarter-point cut as a near certainty, with some even eyeing a larger 50 basis point move. Jobless claims surged to 263,000, well above the 235,000 estimate, pointing to softening in the labor market. Strategists say the bond market could provide the final signal. “If we see a 3-handle on the 10-year, then the market could rally here,” noted Jay Woods of Freedom Capital Markets.

Nasdaq Movers Highlight Trader Sentiment in Tech and AI

Tech stocks saw uneven action. Micron surged over 9%, followed by Lam Research (+5.75%) and Synopsys (+5.36%), reflecting bullish sentiment in the semiconductor and AI-related space. Oracle extended its rally, adding $244 billion in market cap after upbeat cloud guidance. The performance helped keep the Nasdaq in positive territory despite pressure on other big names.

Broadcom and AMD both slipped over 1.6%, dragging on the broader chip sector. Netflix, Alphabet, and Microchip Technology also landed on the decliners list, reflecting some profit-taking after recent runs.

Which Sectors Are Providing Market Support?

Health care led sector gains, up 0.87%, followed by financials (+0.68%) and materials (+0.65%). Consumer staples and discretionary also posted modest increases. Energy lagged, dipping 0.1%, as oil prices paused. Technology added just 0.19%, weighed by mixed performance across its components.

Market Forecast: All Eyes on the Fed and Treasury Yields

Markets are positioned for a dovish turn next week. With inflation data largely in line and jobless claims rising, the Federal Reserve has enough cover to proceed with a rate cut. Traders will closely monitor the 10-year yield—currently hovering near key psychological levels—for confirmation. Any move below 4% could further fuel equity gains, especially in growth-heavy sectors like tech and communications.

More Information in our Economic Calendar.