Market Wrap | Tech Stocks Boost Nasdaq as CPI Data Aligns with Fed's Rate Cut Hopes Amid SpaceX's $350B Valuation Leap
1min read On Wednesday, December 11th, U.S. stock indices closed with mixed results as investors navigated a variety of economic signals. The S&P 500 showed an upward move, gaining 0.82% to settle at 6,084.19 points, and the Nasdaq surged by 1.77% to 20,034.89 points fueled by soaring tech stocks. Meanwhile, the Dow Jones Industrial Average dipped by 0.22% closing at 44,148.56 points.
In individual stock performances, notable gainers included Candel Therapeutics with an impressive 68.11% increase, Stitch Fix which climbed 44.35%, and EV charging solutions company Smart Charging up by 38.79%. On the downside, ADC Therapeutics fell 36.35%, AnaptysBio lost 32.83%, and ImmunityBio decreased by 32.11%.
A strong factor in market dynamics was the publication of November's Consumer Price Index (CPI). Data from the U.S. Bureau of Labor Statistics reported that the CPI increased by 0.3% on a monthly basis and 2.7% annually, aligning perfectly with economic forecasts. This consistency bolstered expectations for the Federal Reserve's potential rate cut of 25 basis points in their upcoming meeting next week. The core CPI, stripping out food and energy, mirrored these increments, comforting investors who anticipate more monetary easing.
Among tech news, SpaceX witnessed a remarkable valuation surge to $350 billion following internal agreements to buy back shares at significantly increased prices. This catapulted SpaceX above other industry behemoths, indicating strong market confidence in its future growth prospects.
Apple finds itself in partnership with Broadcom in developing a proprietary AI chip, signaling a strategic shift to lessen dependency on existing AI chip suppliers and foster innovation in its product lines. The tech giant aims for these chips to reach mass production by 2026.
Additionally, Google's advancements in AI with their new quantum computing chip "Willow" highlight the aggressive industry push towards robust computing capabilities. This delivery promises educational insights by solving complex calculations remarkably faster than existing systems.
Economic analysts are closely watching inflation trends and the Federal Reserve's response to gauge the likely path for future GDP growth and monetary strategies. While challenges persist, particularly with inflation remaining above desired levels, there is cautious optimism in the air with anticipated supportive moves by the Fed.