Markets got a lift Thursday as fresh inflation data came in better than expected—exactly what traders were betting on. The numbers give the Federal Reserve more room to keep cutting rates into next year, which is bullish for growth plays across the board.

Micron's solid earnings report helped too. The chip giant's results steadied the AI stock selloff that had been hammering the sector. When a bellwether like Micron delivers, it signals that earnings fundamentals might actually be holding up despite all the buzz.

So here's the thing: macro conditions are tightening. If inflation keeps cooling and the Fed stays dovish, we could see another leg up in risk assets. But watch those earnings reports closely—they're what separate the narrative hype from actual business health.