The S&P 500 rose 0.8% on Wednesday as inflation data largely aligned with forecasts, boosting expectations for an interest rate cut at the Federal Reserve’s next policy meeting. The tech sector drove gains, with shares of semiconductor firm Broadcom surging 6.6% after reports of a partnership with Apple to develop an AI chip.
The Nasdaq closed above the 20,000-point threshold for the first time ever, driven by strength in the tech sector and gains from Tesla’s stock, which jumped 5.9% to a record high. Analysts at Goldman Sachs and Morgan Stanley boosted their price targets on Tesla, citing CEO Elon Musk’s ties to the incoming presidential administration.
Natural gas futures prices rose over 6%, lifting demand for heating fuel and supporting strong trading in natural gas stocks. Shares of EQT Corp. advanced 5.9%.
However, some sectors underperformed, including health care companies with pharmacy benefit management operations. The introduction of a bipartisan bill requiring insurers and PBM operators to divest their pharmacy businesses led to declines in CVS Health’s shares by 6.2% and those of UnitedHealth and Cigna by smaller margins.
Uber Technologies’ shares slipped 5.8% after General Motors announced it would step away from its Cruise self-driving taxi initiative, raising concerns about the company’s ride-hailing business in the face of competition from Tesla and Waymo. Walgreens Boots Alliance’s shares also fell 5.6%, reversing gains from the previous session after reports of a potential sale to a private equity firm.
Source: https://www.investopedia.com/s-and-p-500-gains-and-losses-today-broadcom-soars-on-reports-of-apple-ai-chip-tie-up-8760033