Nasdaq hits 20,000 as inflation data raises Dec rate-cut hopes
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
November CPI at 2.7% YoY, in line with estimates
GameStop rises after reporting Q3 profit
Broadcom gains after report Apple working on AI chip with co
Indexes up: Dow 0.08%, S&P 500 up 0.90%, Nasdaq up 1.74%
Updates after Nasdaq hits 20,000 points
By Purvi Agarwal and Shashwat Chauhan
Dec 11 (Reuters) -The Nasdaq crossed 20,000 points for the first time onWednesday, as techstocks rallied after the latest inflation report raised hopes ofa rate cut by the U.S. Federal Reserve later this month.
A Labor Department report showed U.S. consumer prices increased by the most in seven months in November, though broadly in line with market expectations.
"Nasdaq is rallying on the prospect of a rate cut next week and has room to move higher," said Peter Cardillo, chief market economist at Spartan Capital Securities.
At 12:16 p.m. ET, the Dow Jones Industrial Average .DJI rose 36.70 points, or 0.08%, to 44,284.53, the S&P 500 .SPX gained 54.47 points, or 0.90%, to 6,089.12 and the Nasdaq Composite .IXIC gained 342.10 points, or 1.74%, to 20,028.02.
Bets on the Fed cutting 25 basis points next week jumped to more than 94%, compared with an 86% chance before the data, according to CME's FedWatch Tool. Bets had risen following Friday's employment report, which showed an uptick in unemployment alongside a surge in job growth.
Also expected this week is a producer price reading on Thursday.
Yields on U.S. government bonds were choppy ahead of an auction of 10-year notes US10YT=RR worth $39 billion later in the day. It was last at 4.2419%. US/
Six ofthe 11 major S&P sub-sectors were trading higher, with consumer discretionary .SPLRCD rising 1.8%, while communication services .SPLRCL added 2.8%.
Most megacap and growth stocks were higher, with Alphabet GOOGL.O up 4.6% and Tesla TSLA.O gaining 3.1%. Both hit all-time highs on an intraday basis.
"Despite the rise (in tech stocks), valuations have not gotten too out of hand, so provided earnings (growth) can continue in the next year, I don't see why the (tech) rally can't continue," said Tom Bruce, macro investment strategist, Tanglewood Total Wealth Management.
On the flip side, the blue-chip Dow was weighed down by a 5.1% decline in UnitedHealth UNH.N.
Among other top movers, GameStop GME.N gained 9.9% after the videogame retailer reported a profit for the third quarter on cost-saving efforts.
Broadcom AVGO.O jumped 5.3% following a report that Apple AAPL.O is working with the company to develop its first server chip specially designed for artificial intelligence.
Macy's M.N shed 5.7% after the department-store bellwether cut its annual profit forecast as persistent weakness in demand clouded its expectations for the holiday shopping season.
Match Group MTCH.O dipped 6.1% as it said it would report fourth-quarter revenue below its previous forecast due to a larger-than-anticipated impact from currency exchange rates.
Advancing issues outnumbered decliners by a 1.73-to-1 ratio on the NYSE and by a 1.33-to-1 ratio on the Nasdaq.
The S&P 500 posted 20 new 52-week highs and six new lows, while the Nasdaq Composite recorded 88 new highs and 87 new lows.
Reporting by Purvi Agarwal and Shashwat Chauhan in Bengaluru; Editing by Anil D'Silva and Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
