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Wall Street rises, tech stocks rise, Tesla hits record highs as inflation data confirms next Fed rate cut – Broadcom (NASDAQ: AVGO ), Boeing (NYSE: BA )

Wall Street opened on a positive note on Wednesday as November inflation data was in line with expectations, with traders confident about the possibility of the Federal Reserve cutting interest rates next week.

The consumer price index increased at an annual rate of 2.7% in November, slightly higher than the 2.6% annual rate in October, but fully consistent with economists’ forecasts. Core inflation, which excludes volatile categories such as food and energy, remained at an annual rate of 3.3%, also in line with expectations.

According to CME FedWatch data, after the report was released, the probability that the Federal Reserve would cut interest rates by 25 basis points at the December 18 meeting surged to 96% from 86% before the data was released.

There is no doubt that investors have almost fully priced in the central bank’s easing measures, dismissing concerns about a potential pause.

Market reaction: Stocks rise, bond yields fall

Major stock indexes reflected growing optimism:

  • this S&P 500 Indextracked by SPDR S&P 500 ETF Trust spyup 0.5%.
  • this Nasdaq 100 Index,Depend on Invesco QQQ Trust, Series 1 QQrose 1% to 21,556 points, just below last Friday’s all-time high of 21,626 points.
  • Blue chips flat, small caps tracking broader market trends iShares Russell 2000 ETF IWMup 0.7%.

In the bond market, Treasury yields fell across all maturities:

  • The 2-year Treasury yield, which is particularly sensitive to changes in monetary policy, fell 4 basis points to 4.10%.
  • The benchmark 10-year Treasury yield fell 2 basis points to 4.20%.
  • popular iShares 20+ Year Treasury Bond ETF TLT up 0.1%.

at the same time, U.S. Dollar Index (DXY) – Tracked Invesco DB U.S. Dollar Index Bullish Fund ETF Youpu – Stay stable.

Outperforming stocks

  • Tesla Inc. Tesla Shares rose 1.2% to $412 per share, their highest level since November 2021.
  • Broadcom Corporation AVGO Shares surged 4%, all but erasing Tuesday’s losses, as a resurgent demand for semiconductors boosted sentiment.
  • boeing company Bachelor The stock rose 2.8%, rising for a third consecutive session, after confirmation of the resumption of 737 MAX production.
  • alphabet inc. Google It rose 5.3% on Tuesday and rose 2.7%. Shares are at their highest levels since July and are very close to an all-time high.

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