The Nasdaq Composite surged on Wednesday, closing above the 20,000 mark for the first time. The tech-heavy index rose 1.77% to end at 20,034.89, marking an all-time high and a closing record. The broader market also gained, with the S&P 500 rising 0.82% to close at 6,084.19.
However, the Dow Jones Industrial Average fell 99.27 points, or 0.22%, to 44,148.56. The market’s rally was driven by the tech sector, particularly Alphabet’s strong performance following the release of its new chip. Shares of the tech giant ended the session 5.5% higher.
Other major tech companies, such as Nvidia and Tesla, also saw gains, with Nvidia rising more than 3% and Tesla climbing nearly 6%. November’s consumer price index showed a 0.3% rise from October and a 2.7% increase year-over-year.
Nasdaq breaches 20,000 milestone
Core CPI, which excludes volatile food and energy prices, increased 0.3% month-over-month and 3.3% on an annual basis. The inflation data met economists’ projections, clearing the way for the Federal Reserve to potentially cut interest rates at its December meeting. Tom Hainlin, senior investment strategist at U.S. Bank Asset Management, said, “We expect a rate cut in the final meeting here at the end of the year.
With no surprises, the direction of the market’s been higher, and there’s been nothing to derail it from melting up into year-end.”
BTIG forecasts a positive start for the restaurant industry in 2025, naming Starbucks and Wingstop as top picks. Analyst Peter Saleh has a buy rating on both stocks, with price targets indicating more than 17% upside for Starbucks and almost 13% upside for Wingstop from Tuesday’s close. Analysts remain bullish on General Motors after the company announced it would cease funding its Cruise division’s robotaxi development, focusing instead on advancing its broader autonomous vehicle technology.
The restructuring could save the company at least $1 billion annually. The S&P 500’s performance following the consumer price index release aligns with historical trends. Nineteen stocks in the index hit fresh 52-week highs during Wednesday’s session, with 12 notching new all-time highs.
