The Nasdaq Breaches 20,000-Point Mark as Tech Stocks Continue Rally
The Nasdaq index breached the 20,000-point mark on Wednesday, reaching an all-time high of 20001.42 points as technology stocks continued to surge. The index rose 1.6% as investors remained optimistic about looser regulation under President-elect Donald Trump and bets on AI-fueled earnings growth in the coming quarters.
The tech-heavy index has jumped more than 33% this year, outperforming the benchmark S&P 500 and the blue-chip Dow Jones Industrial Average. The relentless surge of technology megacaps such as Nvidia, Microsoft, and Apple has added significant weight to the index. The three companies have formed the $3-trillion club, with Apple gaining a narrow lead.
The Nasdaq hit 19,000 points for the first time in early November, shortly after Trump’s presidential victory and the Republican Party’s sweep of both houses of Congress. Since then, U.S. equities have been supported by hopes of Trump’s policies on tax cuts and looser regulation benefiting Big Tech firms, as well as the Federal Reserve’s monetary easing keeping the U.S. economy humming.