Wall Street closes higher fueled by tech rally, soft inflation data

Market Overview - Wall Street's main indexes closed higher as a soft inflation report increased expectations for interest rate cuts by the Federal Reserve [7] - The Consumer Price Index report indicated that consumer prices rose less than anticipated in the year to November, contributing to a more favorable outlook for rate cuts [7] - The S&P 500 gained 52.48 points (0.78%) to close at 6,773.91, the Nasdaq Composite rose by 311.60 points (1.37%) to 23,004.92, and the Dow Jones Industrial Average increased by 69.36 points (0.14%) to 47,955.33 [4][7] Economic Indicators - Jobless claims fell last week, reversing a prior surge, suggesting stable labor market conditions in December [7] - An official jobs report indicated that U.S. job growth rebounded in November, with the unemployment rate rising to 4.6% [7] - Traders are now estimating a 58% chance for a dovish policy move by the Fed in March, according to CME's FedWatch Tool [3][7] Company Highlights - Lululemon's stock surged following news that activist investor Elliott acquired over a $1 billion stake in the company [4][7] - Micron Technology's stock jumped after the company forecasted quarterly profit nearly double analysts' expectations due to strong demand related to artificial intelligence [5][7] - Other memory companies, including SanDisk and Western Digital, also saw significant gains, with the Philadelphia SE Semiconductor Index climbing [5][7] - Trump Media & Technology's stock rose after announcing a merger with TAE Technologies in an all-stock deal valued at over $6 billion [6][8]