Tech stocks are listed on the Nasdaq.
Peter Kramer | CNBC
Alphabets again Tesla it rose to new records on Wednesday, closing at an all-time close Amazon again Meta as tech megacaps lifted the Nasdaq past 20,000 for the first time.
Seven billion-dollar Tech companies added about $416 billion to the market for the day.
For Alphabet, the two-day rally of 11% was inspired by the company’s launch 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 quantum computer useful for practical applications” in finding drugs, battery formation and other areas.
The stock closed at $195.40 on Wednesday, surpassing a high of $191.18, reached on July 10.
Tesla has been below its previous record for a long time. Shares of the electric car maker rose nearly 6% on Wednesday to $424.77, well above their previous close of $409.97 on Nov. 4, 2021. Shares are up 69% since Donald Trump’s election victory last month, with Wall Street hopeful that Tesla. CEO Elon Musk’s good relationship with the incoming president will pay dividends.
Amazon, an apple and Meta were all hitting new highs, although Apple was down 0.5% on Wednesday. Microsoftcurrently, about 4% below the high level reached in July, and the chipmaker Nvidia is off 6% from its record last month.
The overweighting of tech megacaps pushed the Nasdaq to a 33% gain for the year. The index rose 1.8% on Wednesday to close at a high of 20,034.89.
The market has rallied since Trump’s victory on Nov. 4, partly on expectations that the new administration will ease regulatory pressure on the tech industry and allow more innovation.
On Tuesday, Trump nominated Andrew Ferguson as the next chairman of the Federal Trade Commission, replacing Lina Khan, who is best known for blocking takeover attempts by high-tech companies. Ferguson, currently one of five FTC commissioners, “will be the most innovative 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 in anticipation of Federal Reserve rate cuts coming this month. The consumer price index showed a 12-month inflation rate of 2.7% in November, the Bureau of Labor Statistics reported on Wednesday, further reinforcing the market’s view of contraction.
“We know that when interest rates go down, megacaps are actually very sensitive to that, and I think today was the day that the probability of a December cut increased,” Lee said. “That’s actually technically bullish.”
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