US equity indexes rose in midday trading on Thursday as an unexpected decline in the inflation rate and Micron Technology's (MU) strong fiscal Q1 results lifted risk sentiment.

The Nasdaq rose 1.7% to 23,079.7, with the S&P 500 up 1% to 6,791.1 and the Dow Jones Industrial Average 0.4% higher at 48,066.6.

The consumer price index rose 2.7% year over year from 3% reported in September, according to a Thursday report from the Bureau of Labor Statistics, which failed to collect survey data in October because of the federal government shutdown. The November print lagged the Bloomberg-polled consensus for a 3.1% increase. The core CPI, which excludes food and energy prices, rose 2.6% from a year ago, missing the forecasted 3% growth.

"A surprisingly sharp decline in US consumer price inflation should grease the wheels for further Fed easing in 2026," Sal Guatieri, senior economist at BMO Capital Markets, said in a report. "The November CPI report suggests that a loosening labor market and moderating wage growth, combined with limited pass-through of tariffs and moderating shelter costs, are finally corralling inflation."

The CBOE Volatility Index dropped 5.8% to 16.60. The market is now pricing a higher probability, 47%, for an interest-rate cut in March than the 42% likelihood of a monetary policy pause at the 3.5% to 3.75% target range for fed funds, according to the CME Fedwatch tool.

Most US Treasury yields fell, with the 10-year down 2.5 basis points to 4.13%.

Consumer discretionary, technology, and communication services led gainers after midday, with energy leading the decliners.

Micron Technology shares soared 13% after the tech giant reported an increase in fiscal Q1 adjusted earnings and revenue, topping analysts' expectations overnight. Micron also handily beat the market's fiscal Q2 expectations.

West Texas Intermediate crude oil futures jumped 1% to $56.51 a barrel.

Gold futures slipped less than 0.1% to $4,372.81. Silver futures slumped 2.2% to $65.45.