The Nasdaq Composite index closed at a record high in mid-December as tech continued to drive returns ahead of the last Federal Reserve policy meeting of the year.
Having recently smashed through the 20,000 mark, the index closed at 20,173.89 on 16 December, boosted by sharp jumps for Tesla (TSLA:NASDAQ) and chipmaker Broadcom (AVGO:NASDAQ).
The Nasdaq 100 also closed at an all-time high 22,096.66.
Broadcom jumped more than 11%, lifting the broader semiconductor sector as Wall Street continues to make bullish calls on the stock following the chipmaker’s stronger than expected quarterly results.
Those figures, released after the close on 12 December, kicked started a 38% share price rally that has catapulted the firm’s market cap beyond the $1 trillion mark, making it the eighth company in the trillion dollar club and only the ninth ever, following a brief stint above that valuation for Warren Buffett’s Berkshire Hathaway (BRK.B:NYSE) in late November.
Tesla closed at a fresh record high as the EV maker continued its post-election rally that has pushed its market cap to around $1.45 trillion. Analysts at Wedbush and Mizuho lifted price targets for the stock to $515 from $400 and $230 respectively, with Wedbush laying out a case for $650 by the end of next year. Founder Elon Musk’s central role in the Trump administration seen as a boon for the company.
Bitcoin proxy MicroStrategy (MSTR:NASDAQ) stock gave up gains to close flat at $408.50 even as it was announced as a new addition to the Nasdaq 100 index following its latest reshuffle, where it will join AI analytics firm Palantir (PLTR:NASDAQ) and Axon Enterprise (AXON:NASDAQ), which makes security services products including tasers. The trio will replace biotechnology firms Illumina (ILMN:NASDAQ) and Moderna (MRNA:NASDAQ), and Super Micro Computer (SMCI:NASDAQ).
MicroStrategy has become a popular way for UK investors to play the Bitcoin rally that has taken hold since Donald’s Trump presidential victory. Since then, the cryptocurrency has jumped 57% to more than $107,000 as investors bet that Trump will usher in friendlier US rules for crypto. The president-elect has reiterated plans to create a US Bitcoin strategic reserve similar to the country’s strategic oil reserve, stoking the enthusiasm of crypto bulls.
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