The tech-heavy Nasdaq 100 index extended its relentless climb over the week, setting new record highs and nearing the 22,000-point milestone, fueled by strong investor optimism in the Magnificent Seven tech giants and the transformative potential of artificial intelligence.
Year to date, the index has posted a robust 30% gain, on track to outperform the S&P 500 for the ninth time in the last decade.
Since the start of 2023, the Nasdaq 100 is on track to double, nearing a 100% gain — a performance last achieved in 2019-20 with a 102% rise and previously hit during the dot-com boom of 1998-99.
Notably, five out of the seven Magnificent Seven stocks — Apple, Amazon, Alphabet, Meta Platforms and Tesla — achieved fresh record highs over the week. The combined market capitalization of the group exceeded $18 trillion, surpassing China’s gross domestic product at the end of 2023.
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Broadcom Inc. emerged as the week’s standout performer, soaring after a strong quarterly earnings beat and delivering upbeat AI-driven guidance for the coming year. The rally propelled the chipmaker into the exclusive $1 trillion market-cap club, making it the eighth-largest publicly traded company.
Inflation data released during the week raised some red flags. Consumer inflation rose 2.7% year-over-year in November, in line with expectations, but producer inflation jumped to 3% year-over-year, exceeding estimates of 2.6%. This marked the sharpest increase since February 2023, raising concerns about potential cost pass-throughs to consumers.
Investors are fully pricing in a 25-basis-point interest rate cut at the Federal Reserve’s Dec. 18 meeting. Yet policymakers may signal fewer rate cuts for 2025 — potentially just three — while leaving open the possibility of a pause as early as January.
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Trump rings NYSE
President-elect Donald Trump rang the New York Stock Exchange opening bell on Thursday, expressing confidence in a strong U.S. economy. Trump was named TIME Person of the Year for the second time.
GM robotaxi exit
General Motors plans to abandon its robotaxi ambitions, aiming to save $1 billion annually and potentially license Tesla’s Full Self-Driving technology, says analyst Gary Black.
Google’s quantum leap
Alphabet’s new Willow quantum chip showcases cutting-edge innovation. Analysts praised Google for advancing technology leadership, signaling potential breakthroughs in computing power and commercial applications.
Benzinga is a financial news and data company headquartered in Detroit.
