Stock market today, the Nasdaq Composite (^IXIC) reached a new record high on Monday, buoyed by gains in most Big Tech stocks and bitcoin.
The Nasdaq Composite (^IXIC) climbed 1.2%, with shares of Alphabet (GOOGL, GOOG), Tesla (TSLA), Amazon (AMZN), Apple (AAPL), and Broadcom (AVGO) all closing at new record highs.
The S&P 500 (^GSPC) gained nearly 0.4%, inching closer to its own record, while the Dow Jones Industrial Average (^DJI) dipped 0.2%, marking its eighth consecutive decline.
Investors are closely watching the Federal Reserve's final meeting of the year, set to begin on Tuesday, with a key interest rate decision expected on Wednesday. Wall Street is eager for a catalyst to reignite this year's impressive stock rally.
Rate Cut Expectations, Healthcare Stock Declines, and Bitcoin's New Highs
Traders are pricing in a 97% chance of a 25 basis point rate cut in 2024. The bigger question remains whether the Fed will adjust its "dot plot," which currently indicates four additional small cuts in 2025, in light of persistent inflation and potential challenges from the Trump administration.
In corporate news, healthcare stocks such as CVS (CVS), UnitedHealth (UNH), and Cigna (CI) fell after President-elect Donald Trump announced plans to eliminate the "middleman," referring to pharmacy benefit managers (PBMs) often criticized for driving up drug prices.
Meanwhile, shares of software company MicroStrategy (MSTR) surged as it prepares to join the Nasdaq 100 (^NDX). Bitcoin also soared, hitting an all-time high above $107,000 amid growing optimism for a crypto-friendly Trump administration.
Conversely, Super Micro Computer Inc. (SMCI) saw its shares decline as it is set to be removed from the Nasdaq 100.
The Nasdaq reached a fresh record, driven by gains in major tech stocks and bitcoin's historic surge, as investors await the Federal Reserve's policy decisions.
On Monday afternoon, four of the "Magnificent Seven" stocks—Apple, Tesla, Alphabet, and Amazon—were on track to achieve record closures. Google’s parent company, Alphabet (GOOGL, GOOG), and electric vehicle manufacturer Tesla (TSLA) both surged more than 5%, reflecting strong investor confidence and market momentum.
Amazon (AMZN) also reached new highs, contributing to the positive sentiment surrounding major tech stocks. Meanwhile, Apple (AAPL) achieved all-time intraday highs and was poised for a record closing price as well, underscoring its continued dominance in the market.
These gains come amid a broader rally in technology stocks, driven by optimism surrounding upcoming earnings reports and potential catalysts from upcoming Federal Reserve meetings. As investors eagerly await further developments, the performance of these key players highlights the resilience and growth prospects of the tech sector. With all eyes on these giants, the market remains abuzz with anticipation for how these stocks will close the day. The collective momentum of these companies reinforces their critical role in shaping the overall market landscape.
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