Nasdaq Hits New All-Time High as AI Stocks Surge Ahead of Fed Meeting

Market: new all-time record on the Nasdaq

A quasi-linear session on Wall Street, with scores rapidly levelling off (all bets were in as early as 4 p.m.), except for the Nasdaq, which continued to gain ground and magnify its new all-time record (+1.25% to 20,175 at the close and 20,200 at the high), the 5th in 7 sessions for an annual gain of +34.4%. The S&P500 climbed +0.4% to 6,075, posting an annual gain of 29.34%, putting it in a good position for a second year of over 30% growth tomorrow, after the 26% achieved in 2023. The Dow Jones ended down -0.25%, but the Russell-2000 gained 0.68%. Once again, the almost unique theme driving frenzied buying remains artificial intelligence (AI). The day's gains speak for themselves: after its +24.4% jump on Friday, Broadcom soared by a further +11.2% (i.e. +36.6% in 48H). Broadcom confirms its status as the 'fantastic 8th' with a capitalization of 1.170Bn (up +$31Bn in 48H... the same as LVMH). Other stars of the day include Tesla (+6.2%), which sets a new all-time record at $463 (or $1,485Bn). Micron also stands out with +5.6% at $108.25 (after a heavy fall last week), as well as Marvell Technology +3.3% and Intel +2.40%. Wall Street is showing stainless confidence on the eve of a new meeting of the Fed, the US central bank. The bulls could keep the upper hand (it's the home stretch for balance sheet dressing) between now and Wednesday, with the Fed's much-anticipated decisions. A quarter-point easing is almost fully on the table (consensus 90%), and investors will be watching for comments from Fed Chairman Jerome Powell at a press conference on the pace of further cuts. With the Fed having to contend with still-solid growth in the US, but also with a slight reawakening of inflation, investors should remain cautious until the US central bank's statement. USD 'stats' remain robust, with a 'boom' in the services sector, according to the preliminary results of S&P Global's PMI survey published on Monday. The composite 'flash' index measuring activity in services and industry came in at 56.6 this month, compared with 54.9 in November, setting an almost three-year high. The manufacturing sector index fell to 48.3, after 49.7 last month. That said, the most important statistic of the week will be the PCE price index, the Federal Reserve's preferred measure of inflation... but the FED will already have cut rates. Copyright (c) 2024 CercleFinance.com. All rights reserved.

Wall Street: record Nasdaq, confidence at 48H FED FOMC

A quasi-linear session on Wall Street, with scores rapidly levelling off (all bets were in as early as 4 p.m.), except for the Nasdaq, which continued to gain ground and magnify its new all-time record (+1.25% to 20,175 at the close and 20,200 at the high), the 5th in 7 sessions for an annual gain of +34.4%. The S&P500 climbed +0.4% to 6,075, posting an annual gain of 29.34%, putting it in a good position for a second year of over 30% growth tomorrow, after the 26% achieved in 2023. The Dow Jones ended down -0.25%, but the Russell-2000 gained 0.68%. Once again, the almost unique theme driving frenzied buying remains artificial intelligence (AI). The day's gains speak for themselves: after its +24.4% jump on Friday, Broadcom soared by a further +11.2% (i.e. +36.6% in 48H). Broadcom confirms its status as the 'fantastic 8th' with a capitalization of 1.170Bn (up +$31Bn in 48H... the same as LVMH). Other stars of the day include Tesla (+6.2%), which sets a new all-time record at $463 (or $1,485Bn). Micron also stands out with +5.6% at $108.25 (after a heavy fall last week), as well as Marvell Technology +3.3% and Intel +2.40%. Wall Street is showing stainless confidence on the eve of a new meeting of the Fed, the US central bank. The bulls could keep the upper hand (it's the home stretch for balance sheet dressing) between now and Wednesday, with the Fed's much-anticipated decisions. A quarter-point easing is almost fully on the table (consensus 90%), and investors will be watching for comments from Fed Chairman Jerome Powell at a press conference on the pace of further cuts. With the Fed having to contend with still-solid growth in the US, but also with a slight reawakening of inflation, investors should remain cautious until the US central bank's statement. USD 'stats' remain robust, with a 'boom' in the services sector, according to the preliminary results of S&P Global's PMI survey published on Monday. The composite 'flash' index measuring activity in services and industry came in at 56.6 this month, compared with 54.9 in November, setting an almost three-year high. The manufacturing sector index fell to 48.3, after 49.7 last month. That said, the most important statistic of the week will be the PCE price index, the Federal Reserve's preferred measure of inflation... but the FED will already have cut rates. Copyright (c) 2024 CercleFinance.com. All rights reserved.