Nasdaq Surpasses 20000 Points for the First Time Amid Fed Rate Cut Speculations

U.S. stocks surged on Wednesday, with the Nasdaq Composite reaching a record high,
crossing the 20,000-point milestone for the first time in history.
This rally was fueled by U.S. inflation data that bolstered expectations for a Federal Reserve interest rate cut next week.

Contents

Indices
Switzerland
Tesla

Indices

The Dow Jones Industrial Average rose by 0.1% or 40 points to close at 44,287 points.
The S&P 500 gained 0.9% or 53 points, ending at 6,088 points. Meanwhile,
the Nasdaq Composite jumped by 1.7% or 338 points, finishing at 20,025 points.

Data from the Bureau of Labor Statistics revealed that the U.S. Consumer Price Index (CPI) increased by 2.7% year-over-year and 0.3% month-over-month in November, marking the highest monthly rate since April.
This strengthened expectations for the Fed to lower interest rates by 25 basis points next week.
The probability of this rate cut is now at 94%, compared to 78% a week ago.

Switzerland

Swiss National Bank Cuts Interest Rate by 50 Basis Points, Surprising Markets

On Thursday morning, the Swiss National Bank (SNB) announced a 50 basis-point reduction in its interest rate,
bringing it to 0.5% during its final meeting of 2024.
This decision exceeded market expectations, which had anticipated a smaller cut of 25 basis points.

Short-term interest rates are among the most critical indicators impacting currency strength.
Traders are now monitoring other key indicators to gauge the future direction of these rates.
The SNB typically sets its target interest rate for Swiss franc deposits based on an average price range,
factoring in monetary policies and their anticipated outcomes.

Tesla

Tesla Stock Hits Record Close Following Positive Goldman Sachs Recommendation

It shares rose for the sixth consecutive session, closing at a record high on Wednesday.
This rally was driven by a positive recommendation from Goldman Sachs analysts and sustained momentum around the stock since Donald Trump’s presidential election victory.

Tesla shares climbed 5.95%, closing at $424.77, surpassing the previous record of $409.97 set in November 2021.
The stock has gained approximately 71% year-to-date, with most of the gains occurring after the presidential election.

November was particularly strong for Tesla, with the stock rising 38%,
marking its best monthly performance since January 2023 and the tenth-best in its history.
The surge was supported by the close relationship between Tesla CEO Elon Musk and the newly elected U.S. President.

Nasdaq Surpasses 20000 Points for the First Time Amid Fed Rate Cut Speculations

Nasdaq Surpasses 20000 Points for the First Time Amid Fed Rate Cut Speculations

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