*The three major stock indexes diverged, with the Dow Jones Industrial Average falling 0.2%;
*The yield of medium and long-term US Treasury bonds has risen for the third consecutive day;
*Amazon, Google, Meta, and Tesla hit new closing highs.
On Wednesday, the US stock market saw mixed gains and losses, with technology stocks helping to push the Nasdaq and S&P 500 index stronger. The latest inflation data strengthened expectations for the Federal Reserve to cut interest rates next week. As of the close, the Dow Jones Industrial Average fell 0.22% to 44147.56 points, the Nasdaq rose 1.77% to 20034.89 points, setting a new historical high, and the S&P 500 index rose 0.82% to 6084.19 points.
Market Overview
According to a report from the US Department of Labor, the US Consumer Price Index (CPI) rose 0.3% month on month in November, reaching a new high in nearly seven months and a year-on-year increase of 2.7%, which is in line with market expectations.
Goldman Sachs analyst Whitney Watson said, "Today's CPI data has cleared the way for next week's interest rate cut. After today's data is released, the Federal Reserve will enter a quiet period, and they still have confidence in the anti inflation process. We believe that in the new year, the Federal Reserve will further gradually relax monetary policy
The yield of medium and long-term US Treasury bonds has risen for the third consecutive day, with the 2-year Treasury bond closely related to interest rate expectations rising 0.9 basis points to 4.156%, and the benchmark 10-year Treasury bond rising 5.1 basis points to 4.270%. According to the Chicago Mercantile Exchange's FedWatch tool, the bet on the Fed cutting interest rates by 25 basis points next week has jumped to over 96%.
Peter Cardillo, Chief Market Economist at Spartan Capital Securities, said, "Nasdaq has risen due to the prospect of a rate cut next week and has greater potential
Star tech stocks have become the focus of the market. Previously, President elect Trump announced that he will appoint Andrew Ferguson to lead the Federal Trade Commission (FTC), replacing the current FTC chairman Lina Khan. Securities firm Wedbush believes that this is a significant benefit for large technology companies. Because the seven tech giants have once again launched their M&A engine, Microsoft, Oracle, Alphabet, Amazon, and Tesla will accelerate transactions to expand their technological moats
Tesla rose 5.9%, and according to the Bloomberg Billionaires Index, Musk's net worth increased by approximately $50 billion to $439.2 billion. Google rose 5.5% as the company released its next-generation big model Gemini 2.0. Nvidia rose 3.1%, Meta and Amazon rose 2.2%, and Microsoft rose 1.3%. Amazon, Google, MAeta, Tesla all set new closing highs
Apple rose and fell 0.5%, as the company added the artificial intelligence tool ChatGPT in its latest iOS update.
Broadcom rose 6.2% after reports that Apple is working with the company to develop its first server chip specifically designed for artificial intelligence.
The Nasdaq Golden Dragon Index fell 0.7%, NetEase rose 0.4%, Baidu rose 0.2%, Alibaba fell 1.0%, and JD.com fell 3.4%.
Crude oil prices have risen for the third consecutive trading day, and the possibility of the United States imposing new oil sanctions on Russia has increased the prospect of global supply tightening. WTI crude oil contracts rose 2.48% in the near month to $70.29 per barrel. Brent crude oil rose 1.84% in recent months to $73.52 per barrel.
The expectation of the Federal Reserve cutting interest rates has boosted gold prices. COMEX gold futures for December delivery on the New York Mercantile Exchange rose 1.34% to $2733.80 per ounce.