Markets Rally on Inflation Data; Tech Stocks Lead the Surge

The S&P 500 and Nasdaq rose on inflation data supporting Federal Reserve rate cut bets. The Dow dipped due to UnitedHealth's decline. Inflation rose, but met expectations, boosting rate cut likelihood to over 96%. Tech stocks surged, led by Alphabet and Tesla, amidst AI-driven market enthusiasm.

The S&P 500 and Nasdaq made gains on Wednesday following new inflation data, which strengthened investor confidence in a Federal Reserve interest rate cut later this month. However, the Dow Jones experienced a slight decline due to losses in UnitedHealth's stock.

The U.S. Labor Department's report indicated that consumer prices rose significantly in November, aligning with market expectations and removing previous concerns that higher-than-expected inflation might deter the Fed's rate-cut plan. Consequently, bets on a 25 basis point rate cut increased to over 96%, up from 86% earlier.

Meanwhile, technology stocks like Alphabet and Tesla saw significant hikes, boosted by ongoing excitement around artificial intelligence. In other news, former President Donald Trump's election victory was also seen as a positive market factor due to anticipated corporate-friendly policies.

(With inputs from agencies.)