Investors aimed to continue a rally post-election following a report on inflation that exceeded expectations.
Blue-chip index gained 258 points or 0.3%. The S&P 500 advanced by 0.3% and the technology-heavy Nasdaq composite increased by 0.2%.
Rivian Cava and Rocket Lab are some of the top stocks.
David Russell, Global Head of Market Strategy at TradeStation and CNBC’s David Russell said: “Stop worrying about inflation or the Fed.”
After a rally following the election, Tuesday saw a pause in major stock averages.
Stocks and the US dollar surged after Donald Trump won the presidency of the United States again in 2024. After the outcome of the elections, major equity benchmarks reached new highs.
Dollar index reaches its highest level since April
On Wednesday, the dollar index increased 0.4% to 106.50.
The index reached its highest level since April 16 when it touched 106.517.
The dollar’s rise is fueled by the expectation of lower taxes and tariffs on imports under Trump.
The Federal Reserve may have to raise interest rates if these measures continue to increase inflation in the US.
Bitcoin continued its upward trend, rising by nearly 4% in value on Wednesday.
Bitcoin reached $92,000 on Wednesday for the very first time.
The US CPI rose in October
In October, the US Consumer Price Index rose by 2.6% compared to a year ago. The index increased 0.2% on a monthly basis.
This was expected by the market.
The CPI, excluding food and energy rose by 0.3% over the previous month. This is also in line with Dow Jones’ estimates.
The Fed’s December interest rate reduction bets remained unchanged, as the Fed’s inflation figures were in line with expectations.
CME FedWatch shows that traders are pricing in an 82.3 percent probability of the US Central Bank cutting interest rates by 25 basis point in December.
Spotify Technologies jump
The shares of Spotify Technologies rose by about 8% Wednesday.
The total number of monthly active users in the third quarter was 640 millions. It was a 11% rise from the previous year, exceeding FactSet’s consensus.
The company’s bottom-line and top-line still failed to meet analyst expectations in the third quarter.
After the election, small caps continue to rally
After a brief pause on Tuesday, the benchmark Russell 2000 for small-cap stocks jumped by 1% in Wednesday’s session.
Under a Trump administration, small companies that are domestically oriented and more cyclical are expected to do well.
Trump proposed tax reductions and it is expected that he will impose tariffs for all imports into the US from China, in particular.
Last week, the index rose 8.6% and on Tuesday it dropped 1.8%.
Skyworks Solutions dip, Cava surges
Skyworks Solutions, a semiconductor firm, saw its shares fall by nearly 4% Wednesday.
JPMorgan Chase & Co. lowered the price target from $120 down to $100, in a Wednesday report.
Skyworks’ adjusted earnings per share was $1.55, whereas analysts polled at LSEG expected $1.52.
Cava – the chain of fast food restaurants – soared 14% following a strong earnings report.
Cava reported earnings of 15c per share and revenues of $2.44m. LSEG reported that analysts expected to earn 11 cents a share on revenues of $2.34 millions.
The post Dow jumps 100 points after post-election rally, fresh inflation data and Spotify stocks increase may be updated as new information unfolds.
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