U.S. benchmark averages finished mixed on Wednesday (Thursday AEDT), as the Nasdaq Composite closed above the 20,000 mark for the first time, driven by a rally in technology stocks following November's inflation report.
The Dow Jones Industrial Average dipped slightly, losing 99.3 points or 0.2% to 44,148.6, the S&P 500 rose 49.3 points or 0.8% to 6,084.2, while the tech-heavy Nasdaq Composite surged 347.7 points or 1.8% to 20,034, posting a fresh record close.
Alphabet extended its upward momentum, adding 5.6% after the company announced a breakthrough in quantum computing with its new chip.
Other major tech players, including Meta, Amazon, Nvidia, and Tesla also benefited from the implications of the inflation report.
Nvidia shares rose 3.1%, while Tesla jumped 5.9%. Year-to-date, these stocks have surged by 182% and 69%, respectively.
The November consumer price index (CPI) met market expectations, rising 0.3% from October and 2.7% annually. Core CPI, which excludes food and energy, also increased by 0.3% monthly and 3.3% on an annual basis.
While inflation showed a slight acceleration compared to October, it was not deemed high enough to deter the Federal Reserve from easing monetary policy further.
Market participants are pricing in a 94.9% likelihood of a quarter-point rate cut at the Fed’s December 18 meeting, according to CME’s FedWatch Tool.
On the bond markets, 10-year yields were up 1% at 4.269%, while 2-year rates were up 0.2% to 4.153%.