Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Investing.com — The S&P 500 edged higher on Wednesday, as technology continued its gains after inflation provided a big boost to the Federal Reserve’s interest rate cut next week.
At 13:05 ET (1805 GMT), the index gained 74 points or 0.2%, the index gained 0.9%, and rose 1.7%.
In-line CPI data solidifies expectations for a rate cut next week
The Labor Department (CPI) rose 2.7% last month, accelerating slightly from 2.6% in October, while stripping out more volatile items such as food and fuel, the “core” number rose 3.3% in twelve months to July, also in line with expectations.
“The surprise in the November report came from core services, where both rents and OER slowed to 0.21% m/m and 0.23%” Morgan Stanley (NOT:) he said in a recent note.
“In our view, this is a favorable report for the Fed,” it added, backing a 25 basis point rate cut next week at the Fed’s December 17-18 meeting.
About 98 percent of traders expect the Fed to cut next week, up from 92 percent a day earlier, according to Investing.com
Technology continues as Nvidia emerges from recent funk, Google adds to giants; Tesla achieves a record
The technology has broken out of its recent weakness, pushing the broader market higher, as Google and NVIDIA Corporation ( NASDAQ: ) led the gains.
Alphabet (NASDAQ: ) jumped more than 5% to add to its gains from a day earlier, when the tech giant announced a new breakthrough in quantum computing that could herald a sharp increase in computer speed.
Rigetti Computing, which makes quantum integrated circuits for quantum computers, continued to rally for Google, adding 7% to its 45% gain since Tuesday.
Broadcom Inc (NASDAQ: ) meanwhile rallied more than 5% as the chipmaker is reportedly helping Apple (NASDAQ: ) build an AI chip, The Information reports.
Tesla Inc (NASDAQ: ) meanwhile rose 3% to hit a record high. Shares of the electric vehicle maker have jumped 64% since Donald Trump’s election victory on bets that CEO Elon Musk’s close relationship with the president-elect will benefit Tesla.
On the corporate earnings side, Adobe Systems (NASDAQ: ) will report its results after the bell.
Macy’s Falls on Guidance Cuts, Dave & Buster’s Entertainment Reports Wider Loss, CEO Departure
Shares of Dave & Buster’s Entertainment (NASDAQ: ) fell 16% after the Dallas-based arcade and restaurant chain announced the departure of CEO Chris Morris and reported disappointing third-quarter results.
Shares of Macy’s ( NISE: ) fell 4% after the department store chain cut its annual profit forecast as it struggles with weak demand during the holiday shopping season
(Peter Nurse, Ambar Varrick contributed to this article.)
