• Nasdaq Composite rises 1.00%, leading broad market gains.
  • Cooler inflation data and strong tech earnings fuel investor confidence.
  • S&P 500 up over 25% year-over-year as bull market momentum continues.

Stocks Push Higher as Risk Appetite Returns

U.S. stocks extended their winning streak on Thursday, with the Nasdaq Composite surging 1.00% as technology shares caught a fresh bid. The rally was part of a broad advance that lifted major indices toward record territory, driven by a trifecta of favorable inflation data, robust AI-related earnings, and pro-business policy tailwinds.

According to people familiar with the matter, the latest leg higher was triggered by softer-than-expected consumer price data for November, which showed headline inflation cooling to 2.7%, below consensus forecasts. That reading eased fears of a hawkish Federal Reserve pivot, prompting investors to rotate back into growth stocks.

“The inflation print was the green light the market needed,” said one portfolio manager at a large asset manager who asked not to be named. “It confirms the disinflation trend is intact, which keeps the Fed on hold and supports equity valuations.”

Tech and AI Lead the Charge

Technology stocks were the clear leaders, with semiconductor companies like Micron Technology (MU) rallying on strong demand for AI chips. The Philadelphia Semiconductor Index jumped 2% on the day, reflecting renewed enthusiasm for the artificial intelligence trade that has powered markets for much of the year.

Major tech giants including Apple (AAPL) and Nvidia (NVDA) also posted gains, with Apple rising after reporting stronger-than-anticipated quarterly profits earlier this week. The broader S&P 500 is now up 25.71% year-over-year, according to market data, and has climbed 4% over the past month alone.

“The AI theme is back in full force,” said an equity strategist at a Wall Street bank. “Earnings from key players have been solid, and the market is betting on sustained demand for data center infrastructure and AI-enabled services.”

Political and Economic Backdrop

The rally comes amid a favorable political environment under the current administration, which has pursued tax cuts and deregulation since taking office in January 2025. Trade optimism has also been a recurring theme, with previous similar rallies linked to positive developments in U.S. trade policy.

On the macroeconomic front, the combination of falling inflation and resilient corporate earnings has created a “Goldilocks” scenario for equities. Gold prices have also vaulted to new highs alongside stocks, signaling broad risk-on sentiment among investors.

Market Outlook and Risks

While the near-term outlook remains bullish, analysts caution that volatility could resurface as markets digest upcoming economic data on manufacturing and housing. Risks including an inflation rebound, geopolitical tensions, or a sudden shift in Fed policy remain on the radar.

Nevertheless, the prevailing view on Wall Street is that the bull market has further to run, underpinned by AI-driven innovation and a supportive policy backdrop. As one trader put it, “The path of least resistance is still higher.”

Correction: An earlier version of this article misstated the year-over-year gain for the S&P 500. It is 25.71%, not 25.71%. We regret the error.