The Nasdaq Composite (NDAQ) index closed above the key threshold of 20,000 for the first time as technology stocks rally and several mega-cap names hit all-time highs.
Both Google parent company Alphabet (GOOGL) and electric vehicle maker Tesla (TSLA) closed at record highs on Dec. 11, helping to lift the Nasdaq to new heights.
Alphabet’s stock closed at $195.40 U.S., topping its previous all-time high of $191.18 U.S. reached on July 10 of this year.
The stock has now rallied 11% higher in two trading sessions after the technology giant unveiled its new quantum computing chip, which it described as a “breakthrough.”
Tesla’s stock also closed at an all-time high, surpassing its previous record reached in 2021, sparked by a post-election rally that has seen the share price rise more than 50% in a month.
Tesla’s shares closed on Dec. 11 at $424.77 U.S., which is $15 U.S. above its previous peak of $409.97 U.S. on Nov. 4, 2021.
The rise in Alphabet and Tesla stocks comes as investors rotate capital back into the “Magnificent 7” technology giants, with shares of Amazon (AMZN) and Meta Platforms (META) also testing all-time highs in recent days.
The momentum in mega-cap tech stocks helped to propel the Nasdaq index above 20,000 for the first time in its 53-year history.
The index rose 1.8% on Dec. 11 to finish trading at an all-time high of 20,034.89.
The Nasdaq has now achieved a 33% gain this year. The market has rallied since Donald Trump’s election victory on Nov. 5, partly due to expectations for less regulation moving forward.
Capital is also being moved into technology stocks as concerns grow about a resurgence of inflation and fewer interest rate cuts in the year ahead.
