U.S. STOCKS: Nasdaq hits 20,000 as inflation data raises Dec rate-cut hopes

Nasdaq hits 20,000 points on rate cut hopes, tech stocks surge, inflation report boosts market optimism.

The Nasdaq crossed 20,000 points for the first time on Wednesday (December 11, 2024) as tech stocks rallied after the latest inflation report raised hopes of a rate cut by the U.S. Federal Reserve later this month.

A Labor Department report showed U.S. 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 p.m. 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 U.S. 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%.