Tech Stocks Rally as Nasdaq Surges Past 20,000 Amid Fed Rate Speculation

The Nasdaq surpassed the 20,000 milestone driven by a robust tech rally, while Wall Street braces for Federal Reserve's potential rate cut. Economists predict no immediate inflation surge, supporting anticipated monetary policy easing. Meanwhile, Adobe's shares plummeted after projecting lower 2025 revenues, contrasting with Centene's optimistic profit forecast.

The Nasdaq broke through the 20,000 mark for the first time, fueled by a strong performance of technology stocks, even as Wall Street keeps an eye on upcoming economic data and Federal Reserve's potential rate cut decisions. The S&P 500 also ended a recent session on a high, continuing its upward trajectory.

Sources indicate a decline in inflation this autumn stagnated, aligning closer to target levels, suggesting a 25 basis point rate cut by the Federal Reserve at its upcoming meeting. However, economists anticipate a rate pause in January as labor market conditions come under greater scrutiny.

Market movements saw Adobe shares tumble by 11%, following disappointing revenue forecasts for 2025. Contrarily, Centene experienced a 1.9% rise after predicting higher-than-anticipated profits for the same period. These fluctuations came amidst a rise in trading bets on the Fed's monetary policy easing.

(With inputs from agencies.)