Nasdaq Hits 20,000 for the First Time as Big Tech Soars, Tesla Reaches Record High

Big Tech stocks drove the market higher on Wednesday as investors absorbed another month of inflation data that aligned with economists' expectations, suggesting a potential interest rate cut by the Federal Reserve next week.

The Nasdaq Composite (^IXIC) surged about 1.7%, fueled by a strong rally in the "Magnificent Seven" tech stocks. Alphabet’s (GOOG, GOOGL) shares soared over 5%, hitting a new record high. Tesla (TSLA), Meta (META), and Amazon (AMZN) also reached record highs, with Tesla achieving its first record close in over three years. The S&P 500 (^GSPC) rose around 0.8%, while the Dow Jones Industrial Average (^DJI) fell by about 0.2%.

In the cryptocurrency market, bitcoin (BTC-USD) soared to above $101,300 per token.

The latest inflation data released on Wednesday showed that consumer prices rose in line with forecasts in November, keeping the Federal Reserve on track to lower interest rates in December. The Consumer Price Index (CPI) increased by 2.7% year-over-year in November, slightly higher than October’s 2.6% rise, matching economists' predictions. On a "core" basis, excluding volatile food and gas prices, November's prices rose 0.3% from the previous month, maintaining an annual rate of 3.3% for the fourth month in a row.

Paraphrasing text from "Yahoo!Finance" all rights reserved by the original author.