Stock market news for Dec. 11, 2024

The Nasdaq Composite surged Wednesday after November’s inflation report met economists’ projections, clearing the way for the Federal Reserve to cut interest rates again at its December meeting next week.

The tech-heavy index rose 1.77% to end at 20,034.89 and post an all-time high and a closing record. The broad market S&P 500 gained 0.82% to close at 6,084.19. The Dow Jones Industrial Average was the outlier, falling 99.27 points, or 0.22%, to 44,148.56.

The broader tech space helped lift the market, with the Technology Select Sector SPDR Fund (XLK) rising more than 1%. That puts the fund’s year-to-date gains at more than 24%. Alphabet gained for a second day on the heels of Google making a breakthrough in quantum computing with its new chip. Shares of the tech juggernaut ended the session 5.5% higher. Fellow “Magnificent Seven” plays Meta Platforms and Amazon were also higher.

Nvidia, Tesla and other bull market leaders climbed following the relatively tame inflation data as well. The chipmaker ticked up more than 3%, and Tesla advanced nearly 6%. Those two stocks have risen about 181% and almost 71%, respectively, year to date.

In-line inflation data

November’s consumer price index, which tracks a basket of goods and services, was in line with expectations. The reading showed a 0.3% rise from October and 2.7% increase from a year ago. Excluding volatile food and energy prices, core CPI increased 0.3% on the month and 3.3% on an annual basis.

While this inflation data represented a quicker pace from the prior month, traders speculated it was still not high enough to keep the Fed from cutting rates at its next gathering. Fed funds futures are pricing in a roughly 95% likelihood that the central bank lowers rates at that gathering, according to CME’s FedWatch Tool.

“We expect a rate cut in the final meeting here at the end of the year,” Tom Hainlin, senior investment strategist at U.S. Bank Asset Management, told CNBC. “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.”