The latest inflation report just knocked down a key risk for markets — and stocks are soaring

Group 1: Market Overview - US stocks experienced a significant increase following a cooler-than-expected inflation report, which raised confidence in the economy and expectations for continued rate cuts by the Federal Reserve [1][5] - Major indexes, particularly the tech-heavy Nasdaq Composite, rose more than 1% after the Consumer Price Index (CPI) release [3][8] Group 2: Inflation and Federal Reserve - Consumer prices increased by 2.7% year-over-year, which was lower than the anticipated 3.1% annualized increase, suggesting a more favorable inflation environment [1][5] - The latest CPI data has increased the likelihood of the Fed cutting rates by another 25 basis points by March 2026, as the job market shows signs of weakness [5][6] Group 3: Technology Sector Performance - The technology sector rebounded after a period of weakness, with chip stocks, particularly Micron Technology, seeing a notable rise of up to 14% due to strong earnings and positive guidance [2][8] - Micron's performance has alleviated concerns in the AI sector, where investors have been wary of high valuations [8]