Markets Wrap: Nasdaq Tops 20,000 as CPI Boosts Big Tech to Record Highs

Stock Market Wrap

Markets Wrap: Nasdaq Tops 20,000 as CPI Boosts Big Tech to Record Highs

Dec 11, 2024

Market Overview:

Investors’ enthusiasm for US technology giants sent stocks higher Wednesday, snapping a two-day slide after a benign inflation report cemented expectations that the Federal Reserve will continue to cut interest rates. The Nasdaq 100 climbed 1.9% to a record while the S&P 500 rose 0.9%, nearing a recent peak. Broadcom Inc. led the advance following a report that the chipmaker was working on an AI deal with Apple Inc. The so-called Magnificent Seven stocks were once again in the pole position, with Apple, Amazon.com Inc., and Facebook parent Meta Platforms Inc., setting all-time highs. Wall Street’s optimism remains intact even as inflation remains stubbornly above the central bank’s target.

Corporate News:

Apple Inc. is developing a server chip designed especially for artificial intelligence and is working with Broadcom on the chip’s networking technology, the Information reported, citing a person with direct knowledge of the project.
UnitedHealth Group Inc. and CVS Health Corp. were among health-care companies under pressure after Bloomberg reported a bipartisan coalition of US lawmakers has drafted legislation that would force prescription drug middlemen to divest pharmacies they own.
Hershey Co.’s main owner rejected a preliminary takeover offer from Mondelez International Inc., potentially ending a fresh pursuit that would’ve created a food giant with combined sales of almost $50 billion.
GameStop Corp. shares rose after the videogame retailer reported a surprise third-quarter profit as the company’s cost-cutting measures pay dividends.
Walgreens Boots Alliance Inc. shares fell as analysts questioned the probability of Sycamore Partners acquiring the pharmacy chain. On Tuesday, the stock jumped 18% after a report the two sides were in talks over a potential sale.
PJT Partners Inc.’s chief executive officer stated that next year could be the second-biggest for mergers and acquisitions in a decade, and his firm has been on an “aggressive” hiring spree to prepare.

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