The stock market rally marched higher on Wednesday, with the Nasdaq clearing the 20,000 level for the first time. The S&P 500 index climbed 0.8%, just shy of all-time highs. Mega-cap stocks led the way, with Tesla hitting a record high and Alphabet surging on positive news.
Tesla’s stock jumped 5.9% to 424.77, breaking out of a three-year consolidation. Investors view this move as a buy signal, but shares are significantly extended from moving averages. Google’s stock leaped 5.5% to 195.40, hitting a new peak after unveiling its latest AI tool, Gemini 2.0.
Amazon’s stock climbed 2.3% to 230.26, while Meta’s stock gained 2.2% to 632.68. Nvidia’s stock rose 3.1% to 139.313, just above the 50-day line. Microsoft’s stock advanced 1.3% to 448.99, with shares still actionable from the 50-day line.
The 10-year Treasury yield rose five basis points to 4.27%, up 12 basis points this week. Bitcoin surged 5.1% to $101,432.84, another “risk on” sign. Growth ETFs rebounded, with the Innovator IBD 50 ETF and VanEck Vectors Semiconductor ETF gaining ground.
The Health Care Select Sector SPDR Fund (XLV) slumped 1.4%, while the Energy Select SPDR ETF (XLE) climbed 0.2%. Investors should keep an eye on watchlists and have a game plan for adding exposure and scaling back. The market rally continues to power higher, with mega-cap stocks leading the way.
Investors can view Tesla’s move as a buy signal, but shares are significantly extended from moving averages. A pause around current levels might create a lower-risk entry. Meanwhile, Google’s stock surge is driven by its new AI tool, Gemini 2.0. Amazon and Meta continue to hit new highs, while Nvidia’s stock rises above the 50-day line.
The market rally shows no signs of slowing down, with mega-cap stocks leading the way. Investors should stay informed and have a game plan in place to navigate this market.
Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-nasdaq-tops-20000-tesla-hits-high