Big Tech stocks lifted markets on Wednesday as investors absorbed inflation data that aligned with forecasts, reinforcing expectations of a Federal Reserve rate cut next week.
The Nasdaq Composite rose 1.7%, propelled by strong performances in major tech stocks. Alphabet surged over 5% to hit a record high, while Tesla, Meta, and Amazon also closed at all-time highs. Tesla marked its first record close in over three years.
The S&P 500 gained 0.8%, though the Dow Jones slipped 0.2%. Bitcoin prices soared, trading above $101,300 per token.
Fresh data from the Bureau of Labor Statistics showed consumer prices increased by 2.7% annually in November, up slightly from October’s 2.6%. Core inflation, excluding food and energy, held steady at 3.3% year-on-year for the fourth consecutive month.
The data supports the Federal Reserve’s anticipated December rate cut.