Stock market today: Nasdaq tops 20,000 for the first time as tech jumps after inflation data

• The Nasdaq Composite broke past 20,000 for the first time ever on Wednesday.
• Tech led the index to fresh records after November's CPI was in line with estimates.
• The inflation report boosts prospects that the Federal Reserve can cut rates this month.

The Nasdaq Composite breached 20,000 for the first time on Wednesday after November's inflation data revived momentum into the equity rally.

Tech stocks led the way, pushing the index up 1.7%. The S&P 500 rose about 0.8% while the Dow Jones Industrial Average slipped.

Stocks moves were muted in the prior two sessions as investors held back ahead of Wednesday's consumer price index report. Despite fears of a potential negative market reaction on an upside inflation surprise, CPI came in as expected, bringing traders off the sidelines.

Tech leaders such as Nvidia and Tesla drove the market higher. Shares of Elon Musk's carmaker hit a record on Wednesday. The stock has shot up nearly 70% since October's "Robotaxi" event, far outpacing the gains of the rest of the mega-cap Magnificent Seven stocks as investors cheer on CEO Elon Musk's rising role in the Trump administration and a brighter outlook for Tesla car sales.

Musk became the first person to reach a net worth of $400 billion on Wednesday. The tech CEO's wealth has grown by $155 billion this year alone.

Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

• S&P 500: 6,084.19, up 0.82%
• Dow Jones Industrial Average: 44,148.56, down 0.22% (-99.27 points)
• Nasdaq composite: 20,034.89, up 1.77%

Inflation came in at 2.7% on an annual basis in November, slightly outpacing October's 2.6% rise. The slightly hotter reading hasn't rattled Wall Street, which has viewed the data as greenlight for the Federal Reserve to cut interest rates by a quarter point next week.

"The headline CPI was consistently above 3% in the beginning of the year and now it is consistently below 3%, so despite the fact that the series is a little noisy from month-to-month, we believe the Fed is likely to look through these fluctuations and continue on their easing path," said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

The CME FedWatch Tool shows markets see the chance of a 25-basis point cut at the Fed's December meeting at 94.9%.

Wall Street is less certain of what comes next year, given the cloudier outlook for inflation in Donald Trump's second term and the Fed's potential response.

"With the incoming Trump administration likely to impose tariffs on imports and significantly tighten immigration policies, prices could re-accelerate further. If that's the case, December could represent the last cut in the easing cycle," said Ronald Temple, Chief Market Strategist at Lazard.

Here's what else is going on:

• The S&P will soar 16% before a sharp sell-off in the 2nd half of 2025, Tom Lee says.
• Oppenheimer sets Wall Street's highest S&P price target as it eyes 17% stock upside in 2025.
• Goldman sees 3 reasons why gold can rise 11% in 2025, even with a stronger dollar.
• Sustainability-linked bond sales have tanked amid shifting ESG sentiment.
• The market's blistering postelection rally has some ringing alarms for 2025.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil rose 2.78% to $70.5 a barrel. Brent crude, the international benchmark, gained 2.11% to $73.71 a barrel.
• Gold climbed 1.34% to $2,754.8 an ounce.
• The 10-year Treasury yield rose four basis points to 4.267%.
• Bitcoin climbed 5.28% to $101,521.36.