The Nasdaq Composite surged Wednesday after November's inflation report met economists' projections, clearing the way for the Federal Reserve to cut interest rates again at its December meeting next week.

The tech-heavy index rose 1.77% to end at 20,034.89 and post an all-time high and a closing record. The broad market S&P 500 gained 0.82% to close at 6,084.19. The Dow Jones Industrial Average was the outlier, falling 99.27 points, or 0.22%, to 44,148.56.

The broader tech space helped lift the market, with the Technology Select Sector SPDR Fund (XLK) rising more than 1%. That puts the fund's year-to-date gains at more than 24%. Alphabet gained for a second day on the heels of Google making a breakthrough in quantum computing with its new chip. Shares of the tech juggernaut ended the session 5.5% higher. Fellow "Magnificent Seven" plays Meta Platforms and Amazon were also higher.

Nvidia, Tesla and other bull market leaders climbed following the relatively tame inflation data as well. The chipmaker ticked up more than 3%, and Tesla advanced nearly 6%. Those two stocks have risen about 181% and almost 71%, respectively, year to date.

In-line inflation data

November's consumer price index, which tracks a basket of goods and services, was in line with expectations. The reading showed a 0.3% rise from October and 2.7% increase from a year ago. Excluding volatile food and energy prices, core CPI increased 0.3% on the month and 3.3% on an annual basis.

While this inflation data represented a quicker pace from the prior month, traders speculated it was still not high enough to keep the Fed from cutting rates at its next gathering. Fed funds futures are pricing in a roughly 95% likelihood that the central bank lowers rates at that gathering, according to CME's FedWatch Tool.

"We expect a rate cut in the final meeting here at the end of the year," Tom Hainlin, senior investment strategist at U.S. Bank Asset Management, told CNBC. "With no surprises, the direction of the market's been higher, and there's been nothing to derail it from melting up into year-end."

Nasdaq Composite scores fresh closing high

The tech-heavy index moved about 1.8% higher to settle at 20,034.89.

The broad market S&P 500 also gained 0.8% to settle at 6,084.19. Meanwhile, the blue-chip Dow Jones Industrial Average slid 99 points, or 0.2%, to finish at 44,148.56.

— Sean Conlon

BTIG forecasts positive start for restaurants in 2025, names Starbucks and Wingstop as top picks

The restaurant industry may experience some gains in the beginning of 2025, and there are two names in particular that could be poised to benefit, according to BTIG.

"We expect 2025 to start the same way 2024 ended, with modestly positive industry sales and a highly promotional environment intended to recapture customer traffic," analyst Peter Saleh wrote. "In addition to traffic, we expect restaurant operators to continue battling for labor as availability and mid-single digit inflation push restaurants to implement more labor saving technology. We think this will be an emerging theme this year, as numerous tests proceed towards wider deployment in search of labor savings and efficiencies."

With this in mind, Saleh said he likes Starbucks and Wingstop specifically because he believes they are not dependent on severe discounts to generate traffic. The analyst has a buy rating on both names, and his price targets on Starbucks and Wingstop imply more than 17% upside and almost 13% upside, respectively, from Tuesday's close.

"Starbucks is driven by the turnaround efforts of new CEO Brian Niccol and the setup we see for stronger sales and earnings growth in FY26 as these efforts take hold," he also said. "Wingstop reflects the stock's recent post-earnings selloff and our resulting upgrade, believing the concept's long-term potential remains compelling and several levers could reaccelerate traffic."

Both stocks have had a positive year. Starbucks has risen more than 2% year to date, and Wingstop has posted year-to-date gains of more than 28%.

— Sean Conlon

S&P 500 moves in line with historical trends for post-CPI trading, data shows

Wednesday's S&P 500 rally on the back of the consumer price index is tracking to be nearly in line with historical standards, data shows.

The broad index is trading about 0.92% higher just before 1:30 p.m. ET. Since 2000, the S&P 500 has risen 0.86% on the average trading day following the release of CPI data, according to Bespoke Investment Group.

"Back in late 2022 and early 2023, the monthly release of CPI was to the market what The Eras Tour was to Swifties," Bespoke wrote in a post on social media site X, referencing Taylor Swift's recently concluded tour. "It was an event. Not so much anymore."

CPI data for November released Wednesday morning came in line with economists' expectations.

— Alex Harring

Analysts are still bullish on General Motors after Cruise shutdown

Analysts maintained their positive outlook on General Motors after the company said Tuesday that it will no longer fund its Cruise division's robotaxi development work, instead choosing to focus on advancing its autonomous vehicle technology.

Bank of America and Goldman kept their buy ratings on General Motors after its announcement. Bank of America said the company's decision not only supports its confidence in the potential of AV technology for personal vehicles, but it also allows it to cut costs and return greater capital to shareholders next year.

General Motors expects the restructuring to create at least $1 billion of annual savings.

Morgan Stanley's Adam Jonas also remains optimistic on the company's overall capital discipline, which is partly the reason for his recent upgrade of the stock to equal weight.

"We believe most investors had not given GM credit for any positive value of Cruise and would be largely encouraged that the company is taking clear steps to mitigate ongoing losses at a time when better capitalized players (Waymo, Tesla) continue to push the L4 autonomous ridesharing/robotaxi market into the next era," he said in a Tuesday note. "We reiterate our incrementally more constructive view on GM addressing some of the 'controllables' and take steps to reduce forward earnings volatility."

General Motors shares dipped about 1.5% on Wednesday.

— Pia Singh

19 stocks hit new 52-week highs

Nineteen stocks in the S&P 500 hit fresh 52-week highs during Wednesday's session.

Among them, 12 notched new all-time highs. Here are some of those names that reached that milestone:

• Alphabet trading all-time highs back to its initial public offering on Aug. 19, 2004
• Meta Platforms trading at all-time-high levels back to its IPO in May 2012
• Netflix trading at all-time-high levels back to its IPO in May 2002
• Amazon trading at all-time-high levels since back to its IPO in May 1997
• Deckers Outdoor trading at all-time highs back to its IPO in October 1993
• Costco trading at all-time-high levels back to its IPO in December 1985
• Apple trading at all-time-high levels back to its IPO in December 1980
• ServiceNow trading at all-time-high levels back to its IPO in June 2012

Meanwhile, a few names, including CVS Health, hit new 52-week lows in the session. Shares of the company were trading at lows not seen since March 2020.

— Sean Conlon, Christopher Hayes

Dave & Buster's heads for worst day since 2020

Dave & Buster's shares sank 16.5% and headed for their worst day since September 2020 after posting disappointing earnings and announcing the departure of its CEO.

The arcade and dining operator fell short of Wall Street's revenue estimates and posted a wider-than-expected loss of 45 cents per share, excluding items.

The company said CEO Chris Morris has stepped down to "pursue other interests" and said Kevin Sheehan, its current chair of the board, will take over the role as it searches for a permanent replacement.

— Samantha Subin

Bank of America reaffirms buy rating on Alphabet shares after quantum computing announcement

Alphabet's new Willow quantum chip is a major computing milestone that underscores the company's power in innovation, according to Bank of America. 

Shares of Alphabet rose more than 4% Wednesday, leading the market higher. This follows Tuesday's gains of 5.6% on the announcement. Year to date, the stock is up around 38%.

"Over the long term, quantum innovation has the potential to create a significant tech moat for Alphabet," according to analyst Justin Post.

The full story can be found here.

— Hakyung Kim

'Magnificent 7' stocks advance

The "Magnificent Seven," a name coined for the megacap technology names that contributed to the market's big gains last year, performed well on Wednesday. That can help explain the Nasdaq Composite's rise to all-time highs.

Google parent Alphabet led the way, rising more than 5% and touching record levels on the back of its announcement of a "breakthrough" quantum chip and artificial intelligence model updates. Tesla also hit all-time highs and was last up more than 3%.

Apple was the worst-performing member of the group on Tuesday. Still, shares advanced about 0.6%.

— Alex Harring

Stocks making the biggest midday moves: Broadcom, GE Vernova and more

These are the stocks moving the most in midday trading:

• Broadcom — Shares added 5% following a report from The Information that the semiconductor manufacturer was assisting Apple in creating an artificial intelligence chip.
• GE Vernova — Shares of the energy equipment maker jumped more than 6% after announcing it would initiate a dividend of 25 cents per share and an initial $6 billion share repurchase authorization.
• Stitch Fix — Shares surged 44% after the online personal styling company raised its fiscal second-quarter revenue outlook.

Read the full list of stocks moving here.

— Lisa Kailai Han

UnitedHealth shares underperform the Dow

Shares of UnitedHealth Group fell 5.1% Wednesday, making the health-care company the top underperformer in the Dow Jones Industrial Average for the day.

The 30-stock index was last little changed.

UnitedHealth and other major insurance stocks have declined more than 6% since their closing prices last Tuesday, the day prior to the shooting of Brian Thompson, CEO of UnitedHealth's insurance business. The stocks further declined on Wednesday after a bipartisan Senate bill was introduced that would prohibit health insurers from owning pharmacy businesses.

— Hakyung Kim

Trump to ring in NYSE opening bell Thursday, NBC News confirms

President-elect Donald Trump is expected to ring in the opening bell on the New York Stock Exchange at 9:30 a.m. ET on Thursday morning, a transition source has confirmed to NBC News.

The former president is also due to arrive in New York City on Wednesday night, according to the source.

This comes ahead of Trump's scheduled swearing in for a second term on Jan. 20, 2025.

— Sean Conlon

Cryptocurrencies rally, with bitcoin retaking $100,000

The crypto market jumped on Wednesday, following two days of digestion after bitcoin rallied to the $100,000 for the first time ever last week.

The price of the flagship cryptocurrency was last higher by 4% at $100,580.18, according to Coin Metrics. The CoinDesk 20 index, which measures broader cryptocurrency performance, climbed more than 7%.

Crypto stocks Coinbase and MicroStrategy advanced 5% and 6%, respectively.

All but MicroStrategy are still in the red for the week.

For more on the moves in the crypto market, read our full story here.

— Tanaya Macheel

Fundstrat's Tom Lee sees more modest gains for stocks in 2025

Fundstrat head of research Tom Lee sees the stock market rally continuing early next year before a second-half swoon that leaves investors with single-digit gains, according to a 2025 outlook released Wednesday.

Fundstrat and Lee gained prominence in 2020, when he correctly called for a rebound rally after the pandemic-related sell-off early that year. He was also more bullish than most major Wall Street strategists heading into 2024, though the market still surpassed his original S&P 500 target of 5,200.

Read more about Lee's outlook on CNBC Pro.

— Jesse Pound

Eli Lilly will offer patients single-dose vials of Zepbound through telehealth platform Ro

Eli Lilly shares opened slightly lower after the pharmaceutical company agreed to sell single-dose vials of its weight loss drug Zepbound via the telehealth platform Ro. The move is aimed at increasing access to the drug, as many patients with obesity are unable to receive coverage via their health insurance, but are still interested in the treatment.

Since August, Eli Lilly has sold starter doses of Zepbound through its direct-to-consumer website, LillyDirect, for $399 for a month's supply. Many patients gradually increase their dosage to 5 milligrams, which costs $549 per month. Both prices are before any insurance coverage. These versions of the drug are significantly less expensive than a version sold in an autoinjector pen for about $1,000 per month.

Bank of America analyst Allen Lutz said the news is "mixed" for telehealth companies, with "lots to unpack." Lutz said it is positive Eli Lilly is willing to work with telehealth companies such as Ro or Hims & Hers, but will likely mean the drugs being sold will have lower margins than the compounded versions they were selling.

Hims & Hers shares fell more than 3%.

"Ultimately, we have mixed views on this morning's announcement, as we believe that it validates the strength of the DTC model as a new distribution channel while acknowledging that the economics of a brand distributor/pharmacy are less appealing," Lutz said.

— Christina Cheddar Berk

Broadcom pops on report it is assisting Apple with AI chip

Broadcom shares gained 4% following a report from The Information that it is helping Apple create an artificial intelligence chip.

According to the report, citing sources familiar with the matter, Broadcom is assisting with networking needs for the product.

The news also comes as Apple rolls out its ChatGPT integration with Siri. Apple shares were marginally higher.

— Samantha Subin

Stocks open in the green

Stocks inched higher Wednesday morning.

The S&P 500 rose 0.5%, and the Nasdaq Composite rose 0.8%. Meanwhile, the Dow Jones Industrial Average rose 76 points, or 0.2%.

— Sean Conlon

CPI report for November comes in line with expectations

Inflation rose slightly in November, matching expectations.

The consumer price index rose 0.3% month over month and 2.7% year on year for November. That is in line with what economists polled by Dow Jones anticipated.

Core CPI, which strips out food and energy, increased 0.3% month over month. Year over year, it advanced 3.3%. Both matched expectations.

— Fred Imbert

Stocks making the biggest moves premarket

Check out some of the companies making headlines in premarket trading:

• Macy's — The department store chain tumbled 9% after it lowered its fiscal-year forecast. Macy's now sees adjusted earnings coming in between $2.25 and $2.50, while prior guidance adjusted for delivery expense had estimated a range between $2.34 and $2.69, according to FactSet.
• GE Vernova — The energy equipment maker fell 2.4% after it issued weaker-than-expected full-year revenue guidance for both the 2024 and 2025 fiscal years. GE Vernova also announced it would initiate a dividend of 25 cents per share and an initial $6 billion share repurchase authorization.
• Dave & Buster's — The arcade and dining venue operator plummeted more than 14% after posting disappointing third-quarter results and announcing the departure of its CEO. The company reported a loss of 45 cents per share on revenue of $453 million. Analysts expected a loss of 40 cents per share on revenue of $463.7 million.

Read the full list here.

— Brian Evans

C3.ai tumbles 5% in early morning trading following JPMorgan downgrade

Shares of C3.ai tumbled 5% in Wednesday's premarket trading hours after JPMorgan downgraded the enterprise artificial intelligence software company to an underweight rating from neutral.

Analyst Pinjalim Bora said the downgrade was largely based on the stock's valuation, which he now considers to be stretched.

"Given the already rich valuation, which is likely already pricing in a much better growth-plus-profile, which we find difficult to underwrite currently, we expect shares to underperform our coverage for 2025," the analyst wrote.

Shares of C3.ai have surged 45% in 2024.

CNBC Pro subscribers can read the full story here.

— Lisa Kailai Han

Macy's shares tumble following mixed full-year guidance

Shares of Macy's fell more than 10% during premarket trading after the department store operator cut its earnings guidance and slightly raised its revenue guidance for the full year.

Macy's now expects earnings to come in between $2.25 and $2.50 per share, excluding items, down from its prior guidance of $2.55 and $2.90 per share. Analysts polled by FactSet had expected $2.73 per share.

On the other hand, the company now anticipates revenue for the period coming in between $22.3 billion and $22.5 billion, up from its prior guidance of between $22.1 billion and $22.4 billion. Analysts had penciled in $22.18 billion, per FactSet.

The stock has significantly underperformed the broader market this year, with shares tumbling almost 17% year to date. That said, the stock has risen 9% over the past month.

— Sean Conlon

Rate cut next week not in doubt, Vital Knowledge says

Adam Crisafulli of Vital Knowledge thinks a Fed rate cut is a sure thing next week. After that, the outlook is less clear.

"We don't think a rate cut from the FOMC next week is in doubt, but the forward guidance is likely to see a modestly hawkish pivot, w/the 1/29 meeting (at least) likely to be a "hold" (if not the 3/19 one too)," Crisafulli noted.

— Fred Imbert

Europe stocks open lower

European stocks opened slightly lower on Wednesday as market participants awaited the release of U.S. inflation data.

The pan-European Stoxx 600 index traded down 0.2% shortly after the opening bell, with most sectors in negative territory.

— Sam Meredith

South Korea leads gains in Asia as markets trade mixed

Asia-Pacific markets were mixed Wednesday, with South Korea the notable outlier as the country continued to grapple with political turmoil.

The blue-chip Kospi jumped 1.02% and finished at 2,442.51, and the small-cap Kosdaq rose 2.17% to 675.92, as the country's corruption investigation office for high-ranking officials reportedly said it would seek the detention and arrest of President Yoon Suk Yeol if conditions are met.

That comes after media reports emerged that police had raided the presidential office as part of an investigation into Yoon's brief imposition of martial law.

Separately, China is reportedly kicking off its annual economic work conference on Wednesday to outline its economic policies and growth targets for next year.

Hong Kong's Hang Seng index reversed gains to trade 0.76% lower in its final hour of trade, while mainland China's CSI 300 index was 0.17% down and closed at 3,988.83.

— Lim Hui Jie

Investors await inflation data

Market participants are gearing up for closely followed inflation data due Wednesday morning.

Economists polled by Dow Jones anticipate the inflation gauge will rise 0.3% from October and 2.7% compared with a year ago. Excluding volatile food and energy prices, the "core" CPI is expected to increase 0.3% on the month and 3.3% from 12 months earlier.

Read more about what to expect here.

— Alex Harring

See the stocks moving after hours

Here are some stocks moving in extended trading:

• General Motors — Shares of the automotive giant popped nearly 3% after General Motors said it would no longer fund robotaxi development by self-driving car company Cruise.
• GE Vernova — The energy equipment company slid 3% after providing full-year revenue guidance for both the 2024 and 2025 fiscal years that was weaker than expected by analysts polled by FactSet.

See the full list here.

— Alex Harring

Stock futures are little changed

Futures tied to the Dow, S&P 500 and Nasdaq 100 all traded about 0.1% higher shortly after 6 p.m. ET.

— Alex Harring