Stock market today: Nasdaq surges to record high, S&P 500 climbs, while Dow edges up amid investor optimism on economic indicators and Fed outlook.

In an eventful day on Wall Street, the major U.S. indices enjoyed a notable upswing, reflecting investor optimism surrounding the latest economic indicators and the Federal Reserve's monetary policy outlook. Leading the charge was the Nasdaq Composite (^IXIC), which surged by 1.78%, buoyed by robust performances from technology giants. This rise saw the index breaking the 20,000 mark for the first time, a milestone underscored by the significant influence of Big Tech stocks that have been pivotal in driving broader market gains.

Market watchers were keenly focused on the latest Consumer Price Index (CPI) report, which pointed to an inflation rate aligning closely with expectations. This data release is pivotal as it sets the stage for what could be the Federal Reserve's final interest rate decision of the year. With inflationary pressures appearing to be contained, the market sentiment shifted towards anticipating potential rate cuts, which analysts believe could further spur economic growth.

Similarly, the S&P 500 (^GSPC) witnessed a substantial increase, climbing 0.90%. The index's upward trajectory was fueled by renewed faith in the economic recovery and investor confidence in the sustainability of the current rally, which some forecast to continue well into 2025. Speculation on forthcoming fiscal policies, including potential tax amendments, has further contributed to the positive market outlook.

The Dow Jones Industrial Average (^DJI), while more muted in its movement, recorded a slight increase of 0.01%. Despite the restrained growth, the Dow's ascent suggests a cautious optimism among investors, who are weighing the prospects of future economic developments and their impact on traditional blue-chip stocks.

Today's activity was a welcome respite for investors following a period of volatility marked by a cautious assessment of upcoming fiscal changes and regulatory measures. As Big Tech continues to underpin market movements, particularly visible in the Nasdaq's performance, market participants are also turning their attention to other sectors that might benefit from expected policy shifts.

With the Federal Reserve signaling a cautious path forward, including the possibility of gradual rate cuts, and inflation seeming manageable, the sentiment across markets appears buoyant. Investors are closely monitoring corporate earnings announcements and fiscal policy developments that could further influence this upward momentum in the equity markets. As the year progresses, all eyes will remain on these critical economic indicators to guide expectations and investment strategies.