Alphabet and Tesla reach fresh records, joining Amazon and Meta and pushing Nasdaq past 20,000

Alphabet and Tesla reach fresh records, joining Amazon and Meta and pushing Nasdaq past 20,000


Tech stocks on display at the Nasdaq.

Peter Kramer | CNBC

Alphabet and Tesla climbed to fresh records on Wednesday, closing at all-time highs alongside Amazon and Meta as the tech megacaps lifted the Nasdaq past 20,000 for the first time.

Tech’s seven trillion-dollar companies added roughly $416 billion in market cap for the day.

For Alphabet, the two-day 11% rally was driven by the company’s launch of its latest quantum computing chip, which it revealed 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, topping its prior high of $191.18, which it reached on July 10.

Tesla had been below its previous record for much longer. Shares of the electric vehicle maker jumped almost 6% on Wednesday to $424.77, climbing above their prior closing high of $409.97 on Nov. 4, 2021. The stock has soared 69% since Donald Trump’s election victory last month, on Wall Street’s optimism that Tesla CEO Elon Musk’s cozy relationship with the incoming president will pay dividends.

Amazon, Apple and Meta have all been regularly reaching new highs, though Apple slipped 0.5% on Wednesday. Microsoft, meanwhile, is about 4% below its high reached in July, and chipmaker Nvidia is 6% off its record from last month.

The outsized weighting of tech’s megacaps has pushed the Nasdaq to a 33% gain for the year. The index rose 1.8% on Wednesday to close at an all-time high of 20,034.89.

The market has rallied since Trump’s victory on Nov. 4, partly on expectations that the new administration will dial down regulatory pressure on the tech industry and allow for more dealmaking.

On Tuesday, Trump named Andrew Ferguson as the next chair of the Federal Trade Commission, replacing Lina Khan, who is best known for blocking the top tech companies’ acquisition efforts. Ferguson, currently one of the FTC’s five commissioners, “will be the most America First, and pro-innovation FTC Chair in our Country’s History,” Trump wrote in a Truth Social post.

Tom Lee, managing partner at Fundstrat Global Advisors, told CNBC’s “Closing Bell” that investors see more gains in tech with the expectation that a Federal Reserve rate cut is 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 solidifying the market outlook for a cut.

“We know that when interest rates fall, the megacaps actually are very sensitive to that, and I think today was a day where the odds of a December cut increased,” Lee said. “That’s actually bullish for tech.”

WATCH: What Fundstrat’s Tom Lee expects from the markets in 2025

What Fundstrat's Tom Lee expects from the markets in 2025



Source

Inside Tesla’s new retro-futuristic Supercharger diner
Technology

Inside Tesla’s new retro-futuristic Supercharger diner

Tesla has opened the doors to its first diner Supercharger station in Los Angeles. CEO Elon Musk first teased the concept of building a drive-in themed charging station in 2018. On Monday, that vision was finally realized. Tesla describes the two-story restaurant, constructed of a steel exterior inspired by the Cybertruck, as retro-futuristic. It features […]

Read More
Intel drops 9% as chipmaker’s foundry business axes projects, struggles to find customers
Technology

Intel drops 9% as chipmaker’s foundry business axes projects, struggles to find customers

Lip-Bu Tan, Chief Executive Officer of Intel, appears at an event organized by the company. Andrej Sokolow | Picture Alliance | Getty Images Intel‘s stock dropped 9% after the chipmaker said it would slash foundry costs in its latest attempt to turnaround its struggling business. Concerns about where that leaves Intel’s chip manufacturing business overshadowed […]

Read More
Astronomer HR chief Kristin Cabot resigns following Coldplay ‘kiss cam’ incident
Technology

Astronomer HR chief Kristin Cabot resigns following Coldplay ‘kiss cam’ incident

Chris Martin of Coldplay performs live at San Siro Stadium, Milan, Italy, in July 2017. Mairo Cinquetti | NurPhoto | Getty Images Days after Astronomer CEO Andy Byron resigned from the tech startup, the HR exec who was with him at the infamous Coldplay concert has left as well. “Kristin Cabot is no longer with […]

Read More