The Nasdaq composite index closed at a record high, rising nearly 350 points for its first-ever close above 20,000. This marks a significant milestone in the year’s market performance, with big tech stocks driving gains across all major indexes.
Despite concerns over inflation and the sustainability of artificial intelligence (AI) investments, investors remain optimistic about the tech sector. Jamie Cox, managing partner at Harris Financial Group, notes that the transition from AI as a concept to reality is fueling the index’s growth.
The recent consumer price index reading showed a 0.3% rise from October, which is not enough to deter the Federal Reserve from cutting interest rates again in December. Adam Turnquist, chief technical strategist at LPL Financial, believes this development solidifies the possibility of another rate cut and may lead to the “classic Santa Claus rally” into year-end.
Big tech stocks, including Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla, drove Wednesday’s rally, with Tesla’s stock experiencing a 6% gain after Elon Musk reached $400 billion in net worth. The electric-vehicle maker’s post-election share-price gains and potential benefits from streamlined regulation on autonomous driving have attracted investors.
Tesla’s stock has surged by 67% since the election and 70% this year, as investors await regulatory changes that could boost demand for its vehicles.
Source: https://www.washingtonpost.com/business/2024/12/11/nasdaq-20000-record-tesla