Wall Street’s main index rose on Wednesday, with the Nasdaq surpassing the 20,000-point milestone for the first time, following a US inflation report that boosted expectations of a Federal Reserve interest rate cut. The Dow Jones Industrial Average fell 0.22% to 44,148.56, while the S&P 500 rose 0.82% to 6,084.19 and the Nasdaq gained 1.77% to 20,034.89.
All but one of the 11 major S&P sectors advanced, with communication services, technology, and consumer discretionary leading the way. A Labor Department report showed a 7-month high in US consumer prices, but remained in line with market expectations.
Peter Cardillo, chief market economist at Spartan Capital Securities, noted that the Nasdaq has room to move higher, citing the prospect of a rate cut next week, with markets now pricing in a 96% chance of a 25-basis-point cut.
Tesla shares surged 6% to a record high, while other megacap growth stocks such as Nvidia, Alphabet, and Amazon rose between 1.2% and 5.5%. Apple edged down 0.5%. Pharmacy benefit managers Cigna, CVS Health, and UnitedHealth Group fell following a bill introduced to force them to divest their pharmacy businesses.
GameStop gained 7.5% after reporting a profit for the third quarter due to cost savings, while Broadcom jumped 6.6% after a report that Apple is developing a server chip for artificial intelligence. Macy’s fell 0.8% after cutting its annual profit forecast due to weak holiday season demand.
The S&P 500 posted 22 new 52-week highs and 6 new lows, while the Nasdaq recorded 127 new highs and 118 new lows. About 14.25 billion shares were traded on US exchanges, slightly below the 20-session average.