Technology stocks showcased by Nasdaq.
Peter Cramer | CNBC
letter and Tesla Climbs to new record on Wednesday, closes at all-time high Amazon and Yuan With the rise of technology giants, the Nasdaq index exceeded 20,000 points for the first time.
Seven technology companies with market capitalizations of several trillion dollars increased their market value by approximately $416 billion that day.
For Alphabet, the two-day rally of 11% came on the back of the company’s latest quantum computing chip, which it revealed on Monday and described as a “breakthrough” and “how we are building useful quantum computers.” An important step in the process.” Practical Applications” in drug discovery, battery design and other areas.
Alphabet closed at $195.40 on Wednesday, surpassing the previous high of $191.18 hit on July 10.
Tesla shares have been trading below previous records for a long period of time. Shares of the electric vehicle maker rose nearly 6% to $424.77 on Wednesday, climbing to a Nov. 4, 2021 closing high of $409.97. The stock has soared 69%, boosting optimism that CEO Musk’s rapport with the incoming president will pay dividends.
Amazon, apple and Meta both hit new highs regularly, although Apple fell 0.5% on Wednesday. MicrosoftMeanwhile, the chipmaker’s shares are about 4% below the highs reached in July NVIDIA That’s down 6% from last month’s record.
The outsized weight of technology giants has pushed the Nasdaq up 33% this year. The index rose 1.8% on Wednesday to close at a record high of 20,034.89 points.
Markets have rallied since Trump’s victory on Nov. 4, in part on expectations that the new administration will ease regulatory pressure on the technology industry and allow more trading.
On Tuesday, Trump named Andrew Ferguson as the next chair of the Federal Trade Commission, replacing Lena Khan, who is known for blocking takeovers of top technology companies. Ferguson, currently one of five FTC commissioners, “will be the most America-first, most pro-innovation FTC Chairman in the history of our country,” Trump wrote in a “Truth Society” post.
Tom Lee, managing partner of Fundstrat Global Advisors, said on CNBC’s “Closing Bell” program that investors expect technology stocks to rise as the Federal Reserve is expected to cut interest rates this month. The U.S. Bureau of Labor Statistics reported on Wednesday that the consumer price index in November showed 12-month inflation of 2.7%, further strengthening the market prospects for interest rate cuts.
“We know that when interest rates come down, large companies are actually very sensitive to it, and I think today is a day when the likelihood of a rate cut in December increases,” Li said. “That’s actually good for tech stocks.”
watch: Fundstrat’s Tom Lee’s market expectations for 2025
About The Author
