An inline November inflation report unleashed a surge of bullish momentum across markets on Wednesday.

Traders priced in near-certainty of a 25-basis-point rate cut at next week's Federal Reserve meeting, fueling optimism for a more accommodating monetary policy.

The Consumer Price Index rose by 2.7% year-over-year in November, matching expectations. Core inflation — excluding volatile items such as energy and food — remained steady at 3.3%.

Tech stocks took center stage as the Nasdaq 100 rallied 1.7%, notching a fresh record high and logging its best session in over a month. The so-called “Magnificent Seven” mega-cap stocks were the driving force behind the gains.

The Roundhill Magnificent Seven ETF (NASDAQ:MAGS) jumped 2.6%, its best performance since Nov. 6, eyeing its eighth positive session in the last nine trading days.

Six of the seven mega-cap tech giants hit record highs, with the group's combined market cap reaching a staggering $17.3 trillion. Nvidia Corp. (NASDAQ:NVDA) was the sole exception among the elite names.

The S&P 500 joined the rally, climbing 0.9% and nearing its all-time highs. Small-cap stocks added 0.7%, while the Dow Jones Industrial Average remained flat, lagging behind its peers.

Improving rate-cut expectations — fed futures now almost fully pricing in a 25-basis-point rate cut next week — supported gold, with the yellow metal rising 0.9% to 2,717 per ounce, heading for a fourth straight session of gains.

Bullish sentiment returned to the crypto market, with Bitcoin (CRYPTO: BTC) rallying 4% to above $100,000 again, almost erasing losses from prior two sessions.

Oil prices rose more than 2% on Wednesday, even as OPEC downgraded its global demand outlook for both 2023 and 2024.

Wednesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

Wednesday’s Stock Movers

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