CNBC Daily Open: Alphabet and Tesla power Nasdaq to record highs

U.S. inflation meets expectations 
U.S. inflation quickened in November, climbing to 2.7% on-year from October's 2.6%, while core inflation — which strips out food and energy prices — remained unchanged at 3.3%. Both metrics were in line with forecasts. While the inflation rate was higher, the majority of traders still expect the Fed to lower its benchmark rate later this month, with the CME's FedWatch Tool reporting a 96% likelihood.

Nasdaq reaches new high 
Alphabet and Tesla climbed to fresh highs on Wednesday, joining Amazon and Meta to propel the Nasdaq past 20,000 points for the first time. The four tech giants added roughly $416 billion in market cap for the day. The Nasdaq Composite surged 1.77% to close at 20,034.89. The S&P 500 gained 0.82%, but the Dow Jones Industrial Average fell 0.22%. Asian markets also mostly gained, with South Korea's Kospi leading the advance, up 1.78%.

South Korea's "Korea discount" to remain entrenched
South Korean markets have had a dismal 2024, with the so-called "Korea discount" in its stock markets widening compared to other global peers. The recent political upheaval is expected to entrench this phenomenon as efforts to reform the South Korean markets take a back seat amid political turmoil in the country.

OPEC cuts demand forecast again
OPEC has cut its 2024 global oil demand growth forecast for a fifth straight month and by its largest amount yet, according to Reuters. OPEC expects global oil demand to rise by 1.61 million barrels per day, down from the previous forecast of 1.82 million bpd last month. It also cut its 2025 growth estimate to 1.45 million bpd from 1.54 million bpd. China accounted for part of the latest downgrade, with Chinese oil demand expected to rise by 430,000 bpd in 2024, down from 760,000 bpd increase predicted in July.

[PRO]

Alphabet's quantum leap
The Nasdaq Composite crossed the psychologically important 20,000-point mark for the first time ever on Wednesday, partly thanks to Alphabet's quantum computing breakthrough. Wall Street analysts predict the shares can run further.

Tech investors were cheering Wednesday as four of the seven megacap tech stocks closed at all-time highs, with Amazon, Meta, Tesla and Alphabet adding roughly $416 billion in market cap for the day.

Tesla, whose stock has risen by about 71% this year, may be the outlier since the bulk of its gains have come on the back of Trump's election victory last month. 

Tesla CEO Elon Musk has a cozy relationship with the president-elect, having contributed to Trump's campaign and is set to lead the Trump administration's Department of Government Efficiency, alongside onetime Republican presidential candidate Vivek Ramaswamy.

His new role could give Musk power over federal agencies' budgets and staffing, as well as the ability to push for the elimination of inconvenient regulations. 

"The stock is responding to the Trump bump," Craig Irwin, an analyst at Roth MKM, told CNBC's "Squawk on the Street" last week. Irwin increased his price target to $380 from $85, noting in a report that "Musk's authentic support for Trump likely doubled Tesla's pool of enthusiasts and lifted credibility for a demand inflection."

On Wednesday, analysts at Goldman Sachs boosted their price target on Tesla, joining bullish reports from firms like Morgan Stanley and Bank of America. 

— CNBC's Lora Kolodny and Ari Levy contributed to this report.