An unexpectedly low inflation reading and a rebound in technology shares lifted stocks Thursday. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 gained 0.8 percent and the Nasdaq advanced 1.4 percent. US Treasury yields and the dollar declined while oil prices gained.

News that consumer prices rose only 2.7 percent in November on year, well below the 3.0 percent markets expected, bolstered hopes for Federal Reserve rate cuts, though some analysts raised concern about the accuracy of the data. Markets also welcomed news of a drop in jobless claims in the latest week after a surprising jump in the previous week. And a positive outlook from chipmaker Micron revived the AI trade that has faltered lately.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.