IXIC: Nasdaq Composite Posts Best Gain Since Election Day, Up Nearly 3% on Inflation Data

Dow Jones surged 700 points and S&P 500 added 1.8% as pent-up demand for stocks was unleashed after December’s CPI data.

🚀 Nasdaq Surges 2.5%

• The Nasdaq Composite index IXIC posted its best session since November 6 after fresh inflation data opened up a torrent of buy orders. Investors loaded up on tech shares following a weekslong dry spell and sent the tech-heavy benchmark higher by 2.5% on the day.
• The Nasdaq’s two peers also notched big gains. The 30-stock Dow Jones Industrial Average added 1.7%, or a whopping 703 points, and the broad-based S&P 500 shifted higher by 1.9%, or 107 points. It was a good day to be a stock guy.

😎 Consumer Prices Are Cool

• Consumer price data for December was the catalyst. Cooler-than-expected core prices fueled optimism as core inflation rose 3.2% for the year, sliding below expectations of 3.3%. Month on month, core prices increased 0.2%, lower than 0.3% expected.
• Core prices exclude often volatile items, such as food and energy. Headline inflation rose 2.9% on the year, meeting analysts’ consensus views. Month on month, the increase was 0.3%, slightly ahead of expectations of 0.2%.

🏆 Earnings Data Trickles In

• The upbeat inflation readout added to the feelgood factor stirred up by the highly promising start of the earnings season. The big banks on Wall Street offloaded financial updates, which topped estimates and signaled that the US economy was in great shape.
• JPMorgan JPM posted record profits for 2024 despite the drop in interest rates. Looking ahead, retail sales on deck for Thursday will shed light on how robust consumer spending was for December. Also, the earnings season will continue churning out corporate America’s showing for the fourth quarter of 2024.