Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.6%) and Nasdaq Composite (+1.3%) trade higher and market breadth is positive. Investors are reacting to this morning's November Consumer Price Index (CPI), which was in-line with expectations and supported the market's rate cut view.

Treasury yields moved lower, and the likelihood of a 25 basis points rate cut next week moved higher, following the CPI report. The 2-yr yield moved to 4.12% from 4.17% and the 10-yr yield moved to 4.23% from 4.25%. The fed funds futures market sees a 96.2% probability of a 25 basis points next week, up slightly from 88.9% yesterday and 78.1% last week, according to the CME FedWatch tool.

The rate-sensitive S&P 500 real estate sector is still trading lower despite the move in rates. Meanwhile, the communication services (+2.8%) and consumer discretionary (+1.5%) sectors lead the pack thanks to their mega cap components.