S&P 500 climbs after in-line CPI cements Fed rate cut next week
Investing.com -- The S&P 500 rose Wednesday, as tech resumed its rally following in-line inflation that data largely cemented a Federal Reserve interest rate cut next week.
At 1:05 p.m. ET (18:05 GMT), the Dow Jones Industrial Average gained 74 points, or 0.2%, the S&P 500 index gained 0.9%, and the NASDAQ Composite rose 1.7%. In-line CPI data cements expectations for rate cut next week
The Labor Department's consumer price index (CPI) rose by 2.7% last month, accelerating slightly from 2.6% in October, while stripping out more volatile items like food and fuel, the "core" number climbed by 3.3% in the twelve months to July, also in line with expectations.
"The surprise in the November report came from core services, where both rents and OER decelerated to 0,21% m/m and 0.23%," Morgan Stanley (NYSE:MS ) said in a recent note.
"In our view, this is a favorable report for the Fed," it added, backing a 25bps rate cut next week the Fed's December 17-18 meeting.
About 98% of traders expect the Fed to cut next week, up from 92% a day earlier, according to Investing.com's Fed Rate Monitor Tool. Tech resumes as rally as Nvidia snaps out of recent funk, Google adds to gians; Tesla hits record
Tech snapped out of its recent malaise, pushing the broader market higher as Google and NVIDIA Corporation (NASDAQ:NVDA ) led to the upside.
Alphabet (NASDAQ:GOOGL ) jumped more than 5% adding to its gains from a day earlier, when the tech giant announced a new breakthrough in quantum computing, which could herald a sharp increase in computing speeds.
Rigetti Computing, which produces quantum integrated circuits for quantum computers, continued ride Google's rally, adding 7% to its 45% gain from Tuesday.
Broadcom Inc (NASDAQ:AVGO ), meanwhile, rallied more than 5% as the chipmaker is reportedly helping Apple (NASDAQ:AAPL ) create an AI chip, The Information reported. Tesla Inc (NASDAQ:TSLA ), meanwhile, climbed 3% to hit a record high. the EV maker's shares have jumped 64% since its Donald Trump's election victory on bets that CEO Elon Musk's close relationship with the president elect will benefit Tesla. On the corporate earnings front, Adobe Systems (NASDAQ:ADBE ) will release its results after the bell. Macy's slumps on guidance cut, Dave & Buster’s Entertainment reports wider loss, CEO exit
Dave & Buster’s Entertainment (NASDAQ:PLAY ) stock slumped 16% after the Dallas-based arcade and restaurant chain announced the exit of CEO Chris Morris and reported disappointing third-quarter results.
Macy’s (NYSE:M ) stock fell 4% after the department store chain cut its annual profit forecast, as it struggles with weak demand during the holiday shopping season
(Peter Nurse, Ambar Warrick contributed to this article.)
Source: Investing.com
