05:08 PM EST, 12/11/2024 (MT Newswires) -- The Nasdaq Composite closed above the 20,000 level for the first time amid a rally in major technology shares as markets assessed official inflation data.

The technology-heavy Nasdaq jumped 1.8% to 20,034.9 on Wednesday, while the S&P 500 rose 0.8% to 6,084.2. The Dow Jones Industrial Average fell 0.2% to 44,148.6. Communication services led the gainers among sectors, while health care saw the biggest drop.

Alphabet's (GOOG, GOOGL) class A and C shares rose 5.5% each, among the best performers on the S&P 500 and the Nasdaq. The tech giant's Google ( GOOG ) unit launched the first version of its new AI model called Gemini 2.0.

Tesla (TSLA) jumped 5.9%, while Amazon.com (AMZN) and Meta Platforms (META) advanced 2.3% and 2.2%, respectively. Microsoft (MSFT) gained 1.3%.

In other company news, Apple ( AAPL ) is working with Broadcom ( AVGO ) as it develops its first server chip specially designed for artificial intelligence, The Information reported, citing sources. Broadcom ( AVGO ) shares jumped 6.6%, the top gainer on the S&P 500 and the Nasdaq, while Apple ( AAPL ) fell 0.5%.

In economic news, the US consumer price index increased 0.3% in November, ticking up from 0.2% in each of the previous four months, the Bureau of Labor Statistics reported. Annually, inflation accelerated to 2.7% from October's 2.6% pace. Both measures were in line with forecasts in a Bloomberg-compiled survey.

"The November CPI report provided further evidence that inflation progress is becoming much more incremental, suggesting the (Federal Reserve's) fight of returning (to) 2% inflation is far from over," TD Economics said in a note.

The market is now almost fully pricing in a 25-basis-point reduction in interest rates next week, according to the CME FedWatch tool.

The official producer prices report for November is scheduled to be released Thursday.

The US 10-year yield increased 5.2 basis points to 4.27% Wednesday, while the two-year rate rose one basis point to 4.16%.

Albertsons ( ACI ) terminated its proposed $25 billion acquisition by Kroger ( KR ) after two courts ruled to block the deal, while the grocery chain sued Kroger ( KR ) for allegedly failing in its effort to secure regulatory approval. Albertsons ( ACI ) shares dropped 1.5%, while Kroger ( KR ) rose 1%.

Macy's (M) lowered its full-year earnings outlook as the department store operator completed its investigation into an accounting issue that delayed the release of its complete fiscal third-quarter results. The company's shares closed 0.8% lower.

West Texas Intermediate crude oil jumped 2.5% to $70.27 a barrel Wednesday.

The Organization of the Petroleum Exporting Countries cut its 2024 and 2025 global oil demand projections for the fifth consecutive month. The cartel said the bulk of the revision to the 2024 outlook factors in the recently received "bearish" data for the third quarter.

Commercial crude stockpiles in the US fell more than projected last week, government data showed.

Gold increased 1.3% to $2,752.70 per troy ounce, while silver added 0.2% to $32.80 per ounce.