Tech’s seven megacaps closed at all-time highs on Wednesday, pushing the Nasdaq past 20,000. Alphabet and Tesla led the charge, with Alphabet climbing to a fresh record of $195.40 and Tesla jumping almost 6% to $424.77. The rally was fueled by optimism over the new administration’s plans to ease regulatory pressure on the tech industry.
The biggest gainers were Amazon and Meta, which have been reaching new highs regularly. However, Apple slipped below its record high. Microsoft and Nvidia also fell short of their previous highs. The Nasdaq has gained 33% so far this year, with the index rising 1.8% to close at an all-time high of 20,034.89.
Analysts attribute the market rally to expectations that a Federal Reserve rate cut is coming soon. Tom Lee, managing partner at Fundstrat Global Advisors, said investors see more gains in tech as interest rates are expected to fall. The consumer price index showed a 12-month inflation rate of 2.7% in November, further solidifying the market outlook for a rate cut.
Source: https://www.cnbc.com/2024/12/11/alphabet-and-tesla-reach-fresh-records-joining-amazon-and-meta-.html