Jamie Spencer
The Nasdaq Composite surged 1.7% on Wednesday, reaching an all-time high of 20,000. The S&P 500 gained 0.8%, while the Dow Jones Industrial Average remained flat. Tech stocks led the rally, with the Technology Select Sector SPDR Fund (XLK) rising over 1%, bringing its year-to-date gains to more than 24%.
Tech giants drive market momentum
Alphabet extended its rally, fueled by Google’s quantum computing breakthrough. Other tech leaders like Meta and Amazon followed suit with gains, while Nvidia and Tesla added more than 2% each. Both stocks have seen significant growth this year, with Nvidia up over 180% and Tesla climbing more than 66%.
Inflation data aligns with expectations
November’s consumer price index (CPI) met economists’ projections, showing a 0.3% rise from October and a 2.7% increase year-over-year. Core CPI, excluding food and energy prices, also rose 0.3% monthly and 3.3% annually.
Fed rate cut highly anticipated
With inflation data in line with expectations, traders are confident in a Federal Reserve rate cut at its December meeting. CME’s FedWatch Tool indicates a 96% probability of a rate reduction.
Market outlook remains bullish
“The direction of the market’s been higher, and there’s been nothing to derail it from melting up into year-end,” said Tom Hainlin, senior investment strategist at U.S. Bank Asset Management.
