Nasdaq 100 Rallies To Record Highs, Magnificent 7 Market Cap Tops $17 Trillion, Bitcoin Soars To $100,000: What’s Driving Markets Wednesday?
An inline November inflation report unleashed a surge of bullish momentum across markets on Wednesday.
Traders priced in near-certainty of a 25-basis-point rate cut at next week’s Federal Reserve meeting, fueling optimism for a more accommodating monetary policy.
The Consumer Price Index rose by 2.7% year-over-year in November, matching expectations. Core inflation — excluding volatile items such as energy and food — remained steady at 3.3%.
Tech stocks took center stage as the Nasdaq 100 rallied 1.7%, notching a fresh record high and logging its best session in over a month. The so-called “Magnificent Seven” mega-cap stocks were the driving force behind the gains.
The Roundhill Magnificent Seven ETF (NASDAQ:MAGS) jumped 2.6%, its best performance since Nov. 6, eyeing its eighth positive session in the last nine trading days.
Six of the seven mega-cap tech giants hit record highs, with the group’s combined market cap reaching a staggering $17.3 trillion. Nvidia Corp. (NASDAQ:NVDA) was the sole exception among the elite names.
The S&P 500 joined the rally, climbing 0.9% and nearing its all-time highs. Small-cap stocks added 0.7%, while the Dow Jones Industrial Average remained flat, lagging behind its peers.
Improving rate-cut expectations — fed futures now almost fully pricing in a 25-basis-point rate cut next week — supported gold, with the yellow metal rising 0.9% to 2,717 per ounce, heading for a fourth straight session of gains.
Bullish sentiment returned to the crypto market, with Bitcoin (CRYPTO: BTC) rallying 4% to above $100,000 again, almost erasing losses from prior two sessions.
Oil prices rose more than 2% on Wednesday, even as OPEC downgraded its global demand outlook for both 2023 and 2024.
Wednesday’s Performance In Major US Indices, ETFs
Major Indices | Price | 1-day %chg |
Nasdaq 100 | 21,744.29 | 1.8% |
S&P 500 | 6,088.08 | 0.9% |
Russell 2000 | 2,398.19 | 0.6% |
Dow Jones | 44,268.39 | 0.0% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.9% to $608.33.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) flattened at $444.28.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 1.8% to $529.86.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 0.9% to $238.38.
- The Communication Services Select Sector SPDR Fund (NYSE:XLC) and the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLC) outperformed, both rising 1.6%; the Health Care Select Sector SPDR Fund (NYSE:XLV) lagged, down 1.1%.
Wednesday’s Stock Movers
- Alphabet Inc. (NASDAQ:GOOGL) rallied 4.4% after the tech giant announced the launch of Gemini 2.0 AI model.
- Broadcom Inc. (NASDAQ:AVGO) soared 5.7%, ahead of its earnings report slated for Thursday after market closes.
- Walgreens Boots Alliance Inc. (NASDAQ:WBA) dropped 6.5% after surging 17% on Tuesday, following reports of a $7.5 billion sale negotiation with Sycamore Partners.
- Gamestop Corp. (NYSE:GME) rallied over 9% in reaction to earnings report.
- Adobe Inc. (NASDAQ:ADBE) rose 0.4% in anticipation of its quarterly results, set to be released after market close.
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