Wall Street Surges as Key Inflation Data Meets Expectations

Wall Street's main indexes rose after an inflation report aligned with expectations, solidifying predictions for a Federal Reserve rate cut. The Dow Jones, S&P 500, and Nasdaq saw gains, aided by strong growth in tech stocks and optimism following Trump's election win. Broadcom surged while Macy's faced challenges.

Wall Street's major indexes experienced gains on Wednesday, following an inflation report that aligned with forecasts, reinforcing expectations of a Federal Reserve interest rate cut later this month.

The Labor Department's data showed the Consumer Price Index rose by 0.3% in November, matching economists' predictions. Annually, it stood at 2.7%, in line with estimates, with core inflation at 3.3%, excluding volatile items like food and energy.

Bets on the Fed's anticipated 25 basis point rate cut have increased to over 96%, compared to 86% prior to the data release. This follows an employment report displaying a slight rise in unemployment coupled with significant job growth, which also boosted market optimism.

(With inputs from agencies.)