US close: Nasdaq jumps to new high as tech stocks surge
US stocks mostly rose on Wednesday with the Nasdaq jumping to another all-time high on the back of strong gains in the tech sector, though the Dow continued its recent downward path.
The Nasdaq surged 1.8% to a new high of 20,034.90, surpassing the current record of 19,859.77 reached last Friday.
The S&P 500 rose 0.8% to 6,084.19, bouncing back strongly after two days of losses to sit just marginally below last week's all-time high of 6,090.27.
However, the Dow fell 0.2% to 44,148.56. Since setting a new record closing high of 45,014.04 on 4 December, the Dow has fallen for the past five sessions, shedding nearly 2%.
The focus of the session was on November's inflation report from the Bureau of Labor Statistics, which cemented expectations that the Federal Reserve will cut interest rates again next week. As expected, the consumer price index rose at an annual rate of 2.7% last month, up from 2.6% the previous month, while core inflation held steady at 3.3%.
“It didn’t matter that inflation crept up a bit in the US, it mattered that markets were expecting it, and that the temperature is comfortable enough that a US rate cut next week looks pretty nailed on," said Danni Hewson, AJ Bell's head of financial analysis.
Hewson said that, despite the prospect of a Trump presidency – and specifically his proposed trade tariffs – raising the likelihood of inflation creeping higher, the market mood right now is one of optimism.
"That’s tomorrow’s problem and, though markets are forward looking, there’s a turkey feast and a glitter ball between now and then which gives plenty of time for portfolio repositioning once the tinsel has been packed away," Hewson said.
Elsewhere on the macro front, US mortgage applications rose by 5.4% in the week ended 6 December, according to the Mortgage Bankers Association of America, up from the prior week's 2.8% increase. Applications to refinance a mortgage surged 30% week-on-week, while applications to purchase a home fell by 4%.
Market movers
Tech stocks were in demand with semiconductor group Broadcom leading the way on the back of reports that it was working on an AI chip for Apple.
Others in the sector like Alphabet, Micron Technology, Nvidia and Intuit were also putting in decent gains.
Walgreens was falling sharply on the back of rumours that it is in talks with private equity firm Sycamore Partners about a possible takeover. However, according to Sky News, Sycamore will likely spin off its UK division Boots if it succeeds in taking Walgreens private.
Unitedhealth shares continued to drop following the shock killing of the CEO of its insurance arm, Brian Thompson, in New York last week. Since his death on 4 December, shares have fallen nearly 13%.
Dow Jones - Risers
Nike Inc. (NKE) $78.85 2.75%
Salesforce.Com Inc. (CRM) $354.85 1.73%
Goldman Sachs Group Inc. (GS) $592.56 1.29%
Microsoft Corp. (MSFT) $448.99 1.28%
Boeing Co. (BA) $165.96 1.13%
Visa Inc. (V) $313.61 0.45%
Walmart Inc. (WMT) $94.96 0.43%
JP Morgan Chase & Co. (JPM) $243.53 0.28%
Caterpillar Inc. (CAT) $388.82 0.12%
American Express Co. (AXP) $302.34 0.08%
Dow Jones - Fallers
Unitedhealth Group Inc. (UNH) $533.55 -5.60%
Walgreens Boots Alliance, Inc. (WBA) $9.84 -5.57%
Johnson & Johnson (JNJ) $146.64 -1.74%
Dow Chemical Co. (DOW) $41.51 -1.61%
McDonald's Corp. (MCD) $296.10 -1.53%
Merck & Co. Inc. (MRK) $99.75 -1.24%
Travelers Company Inc. (TRV) $245.27 -1.01%
Procter & Gamble Co. (PG) $170.63 -0.96%
Amgen Inc. (AMGN) $273.41 -0.85%
Verizon Communications Inc. (VZ) $42.07 -0.73%
S&P 500 - Risers
Broadcom Inc. (AVGO) $183.20 6.63%
Alphabet Inc. Class A (GOOGL) $195.40 5.52%
Alphabet Inc. Class C (GOOG) $196.71 5.46%
Alaska Air Group Inc. (ALK) $64.09 4.57%
Quanta Services Inc. (PWR) $334.18 4.49%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $430.09 4.41%
CenturyLink Inc. (LUMN) $6.49 4.17%
Norwegian Cruise Line Holdings Ltd (NCLH) $27.50 4.17%
Lam Research Corp. (LRCX) $78.23 4.13%
Micron Technology Inc. (MU) $102.06 4.03%
S&P 500 - Fallers
CVS Health Corp (CVS) $51.76 -6.15%
Unitedhealth Group Inc. (UNH) $533.55 -5.60%
CIGNA Corp. (CI) $294.69 -5.57%
Walgreens Boots Alliance, Inc. (WBA) $9.84 -5.57%
Hershey Foods Corp. (HSY) $177.00 -5.44%
Norfolk Southern Corp. (NSC) $247.25 -3.45%
Advance Auto Parts (AAP) $45.54 -3.23%
Dollar General Corp (DG) $79.82 -3.12%
Kohls Corp. (KSS) $14.77 -2.96%
Northern Trust Corp. (NTRS) $105.15 -2.77%
Nasdaq 100 - Risers
Broadcom Inc. (AVGO) $183.20 6.63%
Tesla Inc (TSLA) $424.77 5.93%
Alphabet Inc. Class A (GOOGL) $195.40 5.52%
Alphabet Inc. Class C (GOOG) $196.71 5.46%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $430.09 4.41%
Lam Research Corp. (LRCX) $78.23 4.13%
Micron Technology Inc. (MU) $102.06 4.03%
Intuit Inc. (INTU) $670.56 3.63%
Nvidia Corp. (NVDA) $139.31 3.14%
Henry Schein Inc. (HSIC) $76.85 2.84%
Nasdaq 100 - Fallers
Walgreens Boots Alliance, Inc. (WBA) $9.84 -5.57%
JD.com, Inc. (JD) $38.21 -3.42%
Qurate Retail Inc. (QRTEA) $0.36 -2.54%
Idexx Laboratories Inc. (IDXX) $437.08 -1.72%
Monster Beverage Corp (MNST) $52.10 -1.72%
Hologic Inc. (HOLX) $75.53 -1.69%
CSX Corp. (CSX) $33.61 -1.64%
Dollar Tree Inc (DLTR) $71.63 -1.61%
Hasbro Inc (HAS) $64.38 -1.50%
Ross Stores Inc. (ROST) $153.84 -1.24%