NEW YORK, Dec. 11 (Xinhua) -- U.S. stocks ended mixed on Wednesday, as the November inflation report aligned with economists' projections.
The Dow Jones Industrial Average fell 99.27 points, or 0.22 percent, to 44,148.56. The S&P 500 added 49.28 points, or 0.82 percent, to 6,084.19. The Nasdaq Composite Index increased 347.65 points, or 1.77 percent, to 20,034.89 for the first time ever.
Six of the 11 primary S&P 500 sectors ended in red, with health and consumer staples leading the laggards by losing 1.30 percent and 0.63 percent, respectively. Meanwhile, communication services and consumer discretionary led the gainers by going up 3.08 percent and 2.02 percent, respectively.
The U.S. Bureau of Labor Statistics reported on Wednesday that the consumer price index (CPI) rose 2.7 percent over the past 12 months, slightly higher than the 2.6 percent annual rate recorded in October and aligning with economists' expectations. On a monthly basis, the CPI increased by 0.3 percent, accelerating from the 0.2 percent rise in the prior month.
Excluding volatile components like food and gas, the core CPI maintained a 3.3 percent increase year over year, consistent with the October figure, signaling steady underlying inflation pressures. After the new report, traders in the Fed funds futures market are now pricing in a 94 percent likelihood of a rate cut at the upcoming Fed meeting, according to the CME's FedWatch Tool.
"Price pressures are hardly settling at a level that the Fed can be completely at ease with," Seema Shah, chief global strategist at Principal Asset Management, said following Wednesday's release. "The Fed will be concerned by the very stubborn nature of inflation and will be increasingly cautious about the upside inflation risks that President-elect (Donald) Trump's policies may bring. We expect the Fed to move off autopilot in January, adopting a more cautious tone, and slowing its pace of cuts to just every other meeting."
The broader technology sector led market gains after the report, with the Technology Select Sector SPDR Fund (XLK) climbing over 1 percent. Alphabet extended its rally following Google's breakthrough in quantum computing with its new chip. Other tech giants like Meta and Amazon also posted gains.
Shares of Nvidia and Tesla also rallied on the back of the inflation report. Nvidia gained over 3 percent, while Tesla advanced 5.93 percent. Year to date, Nvidia has surged approximately 182 percent, and Tesla has risen nearly 70 percent. ■
