Tech stocks showcased at the Nasdaq.
Peter Kramer | CNBC
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What you need to know today
US inflation meets expectations
US inflation accelerated in November, climbed to 2.7% year-on-year from 2.6% in October, while core inflation – which strips out food and energy prices – remained unchanged at 3.3%. Both metrics were in line with forecasts. While the inflation rate was higher, most traders still expect the Fed to cut its benchmark rate later this month, with the CME's FedWatch tool reporting 95% likelihood.
The fastest rate online Nasdaq
Alphabet and Tesla straight up to new heights on Wednesdayjoins Amazon and Meta to move the Nasdaq past 20,000 points for the first time. The four tech giants added about $416 billion in market cap for the day. The Nasdaq Composite 1.77% today standing at 20,034.89. The S&P 500 changed so far +0.82% compared to yesterday Dow Jones industrial average changed so far -0.22% compared to yesterday.
ETFs exceed $1 trillion in inflows
The exchange traded fund industry is overrun $1 trillion in gross inflows for the first time ever, according to a research firm ETFGI and the Investment Company Institute. The fund that has enjoyed the most demand so far this year is the Information about the company Vanguard S&P 500 ETF, Vanguard S&P 500 ETF exchange shares today.which amounted to about $100 billion. US ETFs have more than $10 trillion in assets. The previous record for US ETF inflows was around $920 billion in 2021.
OPEC cuts demand forecast again
OPEC has it cut its 2024 global oil demand growth forecast for the fifth straight month and by the largest rate yet, according to Reuters. OPEC expects global oil demand to rise by 1.61 million barrels per day, down from the previous forecast of 1.82 million bpd last month. It also cut the growth estimate for 2025 to 1.45 million bpd from 1.54 million bpd. China was part of the latest downgrade, with Chinese oil demand expected to rise 430,000 bpd in 2024, down from a 760,000 bpd increase expected in July.
(PRO) Quantum leap of the alphabet
The Nasdaq Composite crossed the psychologically important 20,000-point mark for the first time ever on Wednesday, thanks in part to Alphabetand the advancement of quantum computing. Wall Street analysts predict that the shares can run longer.
The bottom line
Tech investors rejoiced Wednesday as four of the seven megacap tech stocks closed at record highs, with Amazon, Meta, Tesla and Alphabet adding about $416 billion in market cap for the day
The gains in technology come as the inflation reading in November met expectations. The reading clears the way for the Fed to cut rates, which is likely to send technical shares higher.
The enthusiasm could be short-lived, however, due to US president Donald Trump's plans to raise tariffs that could have an impact on inflation.
The Fed will have to stop its easing cycle if inflation remains stubborn, removing one of the main drivers behind the technical rally.
Tesla, whose stock is up about 71% this year, is perhaps the most outlier since most of its gains have come on the back of Trump at election victory last month.
Tesla CEO Elon Musk has a cozy relationship with the president-elect, having contributed to the Trump campaign and is set to lead the Trump administration's Department of Government Efficiency, along with Republican presidential candidate Vivek Ramaswamy .
His new role could give Musk power over the budgets and staffing of federal agencies, as well as the ability to push for the elimination of inconvenient regulations.
“The stock is responding to the Trump bump,” said Craig Irwin, an analyst at Roth MKM. to CNBC's “Squawk on the street” last week. Irwin increased his price target to $380 from $85, noting in a report that “Musk's genuine support for Trump appears to have doubled the number of Tesla enthusiasts and he built credit for the inclusion of demand.”
On Wednesday, analysts at Goldman Sachs raised their price target on Tesla, joining bullish reports from firms such as Morgan Stanley and Bank of America.
