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The tech-heavy index gained 1.8% in mid-week trading, while the S&P 500 added 0.8%. The Dow Jones continued to underperform, ending 100 points lower.
Gains in big-tech were led by Google-parent Alphabet, which gained 5.5% for the second day running, along with Tesla, whose 6% surge took Elon Musk’s net worth past $400 billion. Apple was the only laggard among big tech, ending 0.5% lower.
The consumer price index rose 0.3% in November for the fourth-straight month, while core CPI, which excludes volatile food and energy costs, rose by the same amount, Bureau of Labor Statistics figures showed Wednesday. The core gauge — economists’ preferred number — was up 3.3% from a year before, inline with estimates.
Swaps traders are betting on a quarter-point interest rate cut at the Fed’s policy meeting next week. But whether the Fed will execute more than three similarly sized cuts over the next 12 months remains a key question amid concerns that President-elect Donald Trump’s policies could further spark inflation.
Treasuries failed to hold an initial gain after the data with the yield on the benchmark 10-year rising to 4.27%. The dollar rallied after a report that Chinese leaders are considering allowing their currency to weaken as they brace for higher tariffs under a second Trump presidency.
Wall Street’s fear gauge, the Vix, fell below 14 following the report, an indication the market is expecting calm in the near-term. Stocks and long bonds stand to benefit as fears of a higher inflation print evaporate, according to ClearBridge Investments’ Jeff Schulze.
Other central banks are also expected to lower rates, and in some cases cut faster and deeper than the Fed. The European Central Bank and Swiss National Bank are likely to follow suit Thursday. Meanwhile, China’s two-day Central Economic Work Conference is expected to map out policies for next year, following stimulus signals from top leaders.
(With Inputs From Agencies.)
