Stock market today: Nasdaq closes above 20K for first time as tech resumes rally

Investing.com -- The Nasdaq closed above 20,000 for the first time ever Wednesday, as tech resumed its rally following in-line inflation data that largely cemented a Federal Reserve interest rate cut next week. 

At 4:00 p.m. ET (21:00 GMT), the NASDAQ Composite rose 1.8% to close at a record of 20,034.89. The Dow Jones Industrial Average fell 99 points, or 0.2%, and the S&P 500 index gained 0.8%.  Tech resumes as rally as Nvidia snaps out of recent funk, Google adds to gains; 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 Inc (NASDAQ:RGTI ), which produces quantum integrated circuits for quantum computers, continued ride Google's rally, adding 13% to its 45% gain from Tuesday. 

Broadcom Inc (NASDAQ:AVGO ), meanwhile, rallied more than 6% as the chipmaker is reportedly helping Apple (NASDAQ:AAPL ) create an AI chip, The Information reported.   Tesla Inc (NASDAQ:TSLA ), meanwhile, climbed 5% to close at 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.  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.  Macy's slips on guidance cut, Dave & Buster’s Entertainment reports wider loss, CEO exit

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

Dave & Buster’s Entertainment (NASDAQ:PLAY ) stock slumped 20% after the Dallas-based arcade and restaurant chain announced the exit of CEO Chris Morris and reported disappointing third-quarter results.

(Peter Nurse, Ambar Warrick contributed to this article.)

Source: Investing.com