Tech Rally Leads Nasdaq to Historic High Amid Fed Rate Cut Hopes
Wall Street saw significant gains as tech stocks drove the Nasdaq above the 20,000-point mark for the first time. Expectations of a Federal Reserve rate cut next week fueled market optimism. While some sectors like healthcare declined, others, particularly technology and communication services, saw notable advances.
Wall Street experienced a notable surge on Wednesday, with tech stocks propelling the Nasdaq beyond the landmark 20,000-point threshold for the first time. This came in the wake of a U.S. inflation report which heightened expectations for a Federal Reserve interest rate cut.
The Labor Department indicated a significant rise in U.S. consumer prices for November, aligning with market predictions. While the S&P 500 and Nasdaq posted gains, the Dow dipped amid erratic trading. Notably, sectors including technology, communication services, and consumer discretionary services saw positive movement, whereas healthcare and utilities recorded losses.
In related developments, Tesla shares achieved a 4% increase, hitting a new high after the U.S. presidential election. Meanwhile, Nvidia, Alphabet, and Amazon also saw gains. In contrast, pharmacy benefit managers such as Cigna and CVS declined following new legislative pressures. On the Nasdaq, advancing stocks significantly outnumbered decliners, reflecting the broader uptrend in tech stocks.
(With inputs from agencies.)