Nasdaq index hits new record with surge of tech stocks
Traders work on the floor of the New York Stock Exchange at the opening bell in New York City, US, on Nov. 13, 2024. (AFP Photo)
The U.S. Nasdaq stock market closed above the 20,000-point mark for the first time in history on Wednesday, rising 347.65 points, or 1.77%, driven by strong performance in technology stocks.
Tech’s seven trillion-dollar companies added roughly $416 billion in market cap for the day, as Google’s parent company, Alphabet, and electric vehicle maker Tesla reached new highs.
- Alphabet’s two-day rally saw an increase of 11%, driven by the launch of a new quantum computing chip with applications in drug discovery and battery design. Alphabet closed at $195.40, surpassing the previous high of $191.18 on July 10.
- Tesla shares jumped 6% to an all-time high of $424.77, exceeding the prior peak of $409.97 on Nov. 4, 2021. Tesla’s stock has soared 69% since Donald Trump’s election victory last month.
Amazon, Apple, and Meta have all been regularly reaching new highs, although Apple slipped by 0.5%. Microsoft remains about 4% below its peak from July, and chipmaker Nvidia is 6% off its record high from last month.
The significant weighting of tech megacaps has driven the Nasdaq to a 33% gain this year.
The growth expectations in sectors such as artificial intelligence, cloud technologies, and electric vehicles continue to support the positive sentiment in the markets.
Meanwhile, the Dow Jones Industrial Average fell by 99.27 points, or 0.22%, finishing at 44,148.56. The S&P 500 rose 49.28 points, or 0.82%, to 6,084.19. The VIX volatility index, referred to as the “fear index,” fell by 4.23% to 13.58.
