Technology stocks are listed on the NASDAQ.
Peter Kramer | CNBC
This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open works to provide investors with quick information on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
US inflation meets expectations
US inflation accelerated in November It rose to 2.7% year-on-year from 2.6% in October, while core inflation – which excludes food and energy prices – remained unchanged at 3.3%. Both measures were consistent with expectations. While inflation is higher, the majority of traders still expect the Federal Reserve to cut its benchmark interest rate later this month, with the Chicago Mercantile Exchange forecast. Feedwatch tool Reporting a probability of 95%.
Nasdaq hits new high
alphabet and Tesla He went up to new highs on Wednesdayjoining Amazon and Meta in pushing the Nasdaq index above 20,000 points for the first time. The four tech giants added nearly $416 billion in market cap for the day. the Nasdaq Composite It rose by 1.77% to close at 20,034.89. the Standard & Poor's 500 It rose by 0.82% Dow Jones Industrial Average Decreased by 0.22%.
ETFs exceed $1 trillion in inflows
It has overtaken the exchange-traded fund industry $1 trillion in total inflows for the first time ever According to the research company ETFGI and Investment Company Institute. The box that has enjoyed the largest demand so far this year is Vanguard Standard & Poor's 500 ETF (FU).Which raised nearly $100 billion. U.S. ETFs now hold more than $10 trillion in assets. The previous record for US ETF flows was about $920 billion in 2021.
OPEC cuts demand forecasts again
At OPEC It lowered its forecast for global oil demand growth in 2024 for the fifth month in a row The largest amount to date, according to Reuters. OPEC expects global oil demand to rise by 1.61 million barrels per day, down from previous expectations of 1.82 million barrels per day last month. It also lowered its growth estimate in 2025 to 1.45 million barrels per day from 1.54 million barrels per day. China formed part of the latest reduction, with Chinese oil demand expected to rise by 430,000 bpd in 2024, down from an increase of 760,000 bpd expected in July.
(PRO) Alphabet paradigm shift
the Nasdaq Composite It crossed the psychologically important 20,000-point mark for the first time ever on Wednesday, thanks in part to… alphabet's Quantum computing breakthrough. Wall Street analysts expect stocks to continue rising.
Bottom line
Technology investors were cheering on Wednesday as four of the seven giant tech stocks closed at all-time highs, with Amazon, Meta, Tesla and Alphabet adding nearly $416 billion in market cap for the day.
The gains in the technology sector come as November's inflation reading is in line with expectations. The reading paves the way for the Federal Reserve to cut interest rates, which will likely send technology stocks higher.
However, this enthusiasm may be short-lived, in light of US President-elect Donald Trump's plans to raise tariffs that are likely to be inflationary.
The Fed will have to halt its easing cycle if inflation remains stubborn, removing one of the main drivers behind the tech rally.
Tesla, whose stock rose by about 71% this year, may be the outlier because the bulk of its gains came on the back of… Trump Winning the election last month.
Tesla CEO Elon Musk has a cozy relationship with the president-elect, having contributed to Trump's campaign and is set to lead the Trump administration's government efficiency department, alongside Republican presidential candidate Vivek Ramaswamy.
His new role could give Musk authority over federal agency budgets and staffing, as well as the ability to push for the repeal of inappropriate regulations.
“The stock is responding to the Trump shock,” said Craig Irwin, analyst at Roth MKM. He told CNBC “Peep in the street“Last week. Irwin raised his price target to $380 from $85, noting in a report that Musk's “genuine support for Trump would likely double the pool of Tesla enthusiasts and increase the credibility of the demand reversal.”
On Wednesday, analysts at Goldman Sachs boosted their price targets for Tesla, joining bullish reports from companies like Morgan Stanley and Bank of America.
