Stock market today: Live updates

The S&P 500 rose 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 broad market index gained 0.7%, and the Nasdaq Composite advanced 1.3%. The Dow Jones Industrial Average hovered around the flatline.

Nvidia, Tesla and other bull market leaders led the gains following the relatively tame inflation data. The chipmaker was nearly 2% higher, and Tesla advanced around 2%. Additionally, Alphabet gained for a second day on the heels of Google making a breakthrough in quantum computing with its new chip.

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 99.9% 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 kind of been nothing to derail it from melting up into year-end.”

The market rebounded Wednesday from a losing day in the prior session, as Tuesday marked the second straight down day for the S&P 500  and Nasdaq Composite  and fourth negative session in a row for the Dow.