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A Labor Department report showed US consumer prices increased by the most in seven months in November, though broadly in line with market expectations.
“Nasdaq is rallying on the prospect of a rate cut next week and has room to move higher,” said Peter Cardillo, chief market economist at Spartan Capital Securities.
At 12:16 pm ET, the Dow Jones Industrial Average rose 36.70 points, or 0.08%, to 44,284.53, the S&P 500 gained 54.47 points, or 0.90%, to 6,089.12 and the Nasdaq Composite gained 342.10 points, or 1.74%, to 20,028.02.
Bets on the Fed cutting 25 basis points next week jumped to more than 94%, compared with an 86% chance before the data, according to CME’s FedWatch Tool. Bets had risen following Friday’s employment report, which showed an uptick in unemployment alongside a surge in job growth.
Also expected this week is a producer price reading on Thursday.
Yields on US government bonds were choppy ahead of an auction of 10-year notes worth $39 billion later in the day. It was last at 4.2419%. Six of the 11 major S&P sub-sectors were trading higher, with consumer discretionary rising 1.8%, while communication services added 2.8%.
Most megacap and growth stocks were higher, with Alphabet up 4.6% and Tesla gaining 3.1%. Both hit all-time highs on an intraday basis.
“Despite the rise (in tech stocks), valuations have not gotten too out of hand, so provided earnings (growth) can continue in the next year, I don’t see why the (tech) rally can’t continue,” said Tom Bruce, macro investment strategist, Tanglewood Total Wealth Management.
On the flip side, the blue-chip Dow was weighed down by a 5.1% decline in UnitedHealth.
Among other top movers, GameStop gained 9.9% after the videogame retailer reported a profit for the third quarter on cost-saving efforts. Broadcom jumped 5.3% following a report that Apple is working with the company to develop its first server chip specially designed for artificial intelligence.
Macy’s shed 5.7% after the department-store bellwether cut its annual profit forecast as persistent weakness in demand clouded its expectations for the holiday shopping season.
Match Group dipped 6.1% as it said it would report fourth-quarter revenue below its previous forecast due to a larger-than-anticipated impact from currency exchange rates.
Advancing issues outnumbered decliners by a 1.73-to-1 ratio on the NYSE and by a 1.33-to-1 ratio on the Nasdaq.
The S&P 500 posted 20 new 52-week highs and six new lows, while the Nasdaq Composite recorded 88 new highs and 87 new lows.
