S&P 500 ends a four-day losing streak after cooler-than-expected inflation data

U.S. equities rebounded on Thursday, with the S&P 500 ending a four-day losing streak after softer-than-expected inflation data lifted expectations for lower interest rates in 2026, alongside upbeat guidance from chipmaker Micron Technology.

The benchmark index rose 0.79% to close at 6,774.76. The Nasdaq Composite outperformed, climbing 1.38% to 23,006.36, while the Dow Jones Industrial Average added 65.88 points, or 0.14%, to finish at 47,951.85.

The delayed November consumer price index report — the first released since the U.S. government shutdown ended last month — showed annual headline inflation easing to 2.7%, according to the Bureau of Labor Statistics, below the 3.1% forecast by economists surveyed by Dow Jones. Core CPI, which strips out food and energy costs, also came in softer at 2.6% versus expectations of 3%.

The CPI release had been postponed from its original Dec. 10 schedule due to the longest government shutdown on record. As a result, the report lacked some of the usual comparison data after the October inflation release was canceled, potentially limiting its usefulness as a signal of a sustained disinflation trend. Some economists also flagged concerns around housing-related calculations.

Despite those caveats, equities extended gains following the data, aided by initial jobless claims that also came in below estimates. Micron Technology stood out during the session, surging about 10% after issuing a strong revenue outlook for the current quarter, helping revive momentum in artificial intelligence-linked stocks after recent weakness.