Tech stocks listed on Nasdaq.
Peter Kramer | CNBC
the alphabet and Tesla It soared to fresh records on Wednesday, closing at an all-time high Amazon and Meta as tech megacaps lifted the Nasdaq above 20,000 for the first time.
Tech’s seven trillion dollar companies added about $416 billion in market capitalization for the day.
In Alphabet’s case, the two-day 11% rally was driven by the company start up of its latest quantum computing chip, which it unveiled on Monday and described as a “breakthrough” and “an important step in our journey to build a useful quantum computer with practical applications” in drug discovery, battery design and other areas.
Alphabet closed at $195.40 on Wednesday, surpassing its previous high of $191.18, which was reached on July 10.
Tesla stayed below previous records for much longer. Shares of the electric vehicle maker rose nearly 6% to $424.77 on Wednesday. climbing Up from the closing high of $409.97 on November 4, 2021. Shares are up 69% since then. Donald Trump’s election victory last month on Wall Street’s Tesla CEO’s optimism Elon Musk’s A comfortable relationship with the incoming president will pay dividends.
Amazon, the apple and the Meta are all regularly reaching new highs, although Apple fell 0.5% on Wednesday. Microsoftwhile the highest reached in July is about 4% below, and chipmaker Nvidia There is a 6% discount compared to last month.
It has been driven by the sheer weight of technology megacaps Nasdaq has obtained a profit of 33% per year. The index rose 1.8% on Wednesday to close at a high of 20,034.89.
The market has rallied since Trump won on Nov. 4, partly on hopes that the new administration will ease regulatory pressure on the tech industry and allow for more deals.
On Tuesday, Trump His name was Andrew Ferguson as the next chairman of the Federal Trade Commission, replacing Lina Khan, who is known for blocking acquisition efforts by major technology companies. Ferguson, currently one of five FTC commissioners, “will be the most America First and most pro-innovation FTC chairman in our Nation’s history,” Trump wrote in a Truth Social post.
Tom Lee, managing partner at Fundstrat Global Advisors, told CNBC’s “Closing Bell” that investors are seeing more gains in technology as the Federal Reserve is expected to cut interest rates this month. Consumer price index he showed The 12-month inflation rate in November was 2.7%, the Bureau of Labor Statistics reported on Wednesday, further strengthening expectations of a market contraction.
“We know that when interest rates go down, megacaps are very sensitive to that, and I think the odds for a December cut have increased today,” Lee said. “That’s really uplifting for technology.”
SEE: What Fundstrat’s Tom Lee expects from the markets in 2025
