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Beleaguered tech stocks rocket higher after consumer price index shows inflation easing

A trade inside Nasdaq Marketsite in New York City.

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Tech stocks rocketed higher Thursday after the consumer price index showed signs of easing inflation. Stocks in the cloud computing, e-commerce and payments sectors showed particular strength, but the rally lifted nearly every tech company significantly.

Shares of game engine Unity rose 29.4%, fintech companies like Block and Coinbase spiked 17.8% and 10.7%, respectively, cloud and software companies like Atlassian and Snowflake were up more than 15% and e-commerce firms like Amazon, Coupang, Etsy and Shopify were all up at least 12%, with Coupang up 22.6%.

The WisdomTree Cloud Computing Fund, a basket of cloud software stocks, had its best day on record on Thursday, surging 13.3%. It’s still down 50% for the year.

The moves were higher than the overall market. The S&P 500 was up 5.5% Thursday and the tech-heavy Nasdaq Composite Index was up 7.4%.

The market rally followed the news that consumer prices rose less than expected, just 0.4%, in October. The news comes at a key time as shoppers gear up to buy gifts for the holiday season.

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