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Nasdaq rises above 20,000 for first time
U.S. stocks rose on Wednesday, December 11, after the November inflation report came in line with economists’ expectations, paving the way for the Federal Reserve to cut interest rates again at its meeting next week.
The S&P 500 rose 0.9%, and the Nasdaq Composite rose 1.7% to surpass the 20,000 level for the first time, helped by a rise in technology stocks. The Dow Jones Industrial Average also rose 46 points, or 0.1%.
Nvidia, Tesla and others led the market higher after relatively muted inflation data, with the former up 1.4% and the latter up more than 2%.
This comes after the release of the U.S. consumer price index for November, which tracks a basket of goods and services, which came in in line with expectations.
While November’s inflation data was faster than the previous month, traders speculated that it was still not high enough to prevent the Fed from cutting rates at its next meeting.
Fed fund futures are pricing in a 99.9% chance that the Fed will cut rates at its December meeting, according to CME’s FedWatch tool.
The market had a losing session on Tuesday, with the S&P 500 and Nasdaq Composite falling for a second day and the Dow falling for a fourth straight day.
