Tech Stocks Surge Amid Fed Rate Cut Hopes

Wall Street saw mixed results as the S&P 500 and Nasdaq climbed on hopes for a potential Federal Reserve interest rate cut, while the Dow Jones dipped. The rise in consumer prices fueled expectations for policy changes, with tech stocks like Tesla and Nvidia leading gains.

The S&P 500 index rose on Wednesday, propelling the Nasdaq past the 20,000-point mark for the first time, fueled by a tech stock rally following a U.S. inflation report that heightened expectations of a Federal Reserve interest rate cut.

While the Dow Jones Industrial Average fell, pulled down by health insurers amid new legislative moves affecting their profitability, the S&P and Nasdaq saw gains. Preliminary data indicated the S&P 500 gained 49.21 points to close at 6,084.12, with the Nasdaq climbing 347.66 points to 20,034.90. However, the Dow decreased by 94.48 points to 44,153.35.

The likelihood of a Fed rate cut next week rose to over 96%, according to CME's FedWatch Tool, spurred by recent job growth data. Key tech stocks, including Tesla, Nvidia, Alphabet, and Amazon, posted gains, whereas health sector stocks like Cigna and CVS Health faced losses. Meanwhile, shares of GameStop and Broadcom improved due to favorable earnings and strategic partnerships, respectively.

(With inputs from agencies.)