Technology

Big Tech Shares Power Nasdaq to Record High Close as Bitcoin Rallies Before Fed Meeting

Big Tech shares power Nasdaq to a record high close, while Bitcoin rallies ahead of the Fed meeting. Apple, Alphabet, and Tesla drive gains as markets await the Fed’s decision.

The Nasdaq soared to a record high close, driven by Big Tech shares, while Bitcoin rallied ahead of the highly anticipated Federal Reserve policy meeting. Investors were eager to gauge the Fed’s next move, with many anticipating that the central bank would reduce interest rates further. Tech stocks, led by the likes of Apple, Alphabet, Tesla, and Broadcom, showed strong growth, helping lift the Nasdaq to 20,173.89, a new record.

Big Tech Shares Surge and Drive Nasdaq’s Record Close

Shares of Apple, Alphabet, and other tech giants surged on Monday, pushing the Nasdaq to an all-time high. The tech-heavy index rose 1.24%, or 247.17 points, closing at 20,173.89. This marked the Nasdaq’s highest close ever, reflecting investor confidence in the growth of Big Tech shares despite broader market volatility.

The broader S&P 500 index also ended the day up 0.38%, or 22.99 points, at 6,074.08, while the Dow Jones Industrial Average experienced a slight decline, falling 0.25%, or 110.58 points, to 43,717.48. This marked the eighth consecutive decline for the Dow, its longest losing streak since 2018.

Big Tech Shares in Focus as the Fed’s Policy Meeting Unfolds

All eyes are on the Federal Reserve’s policy meeting, which concludes on Wednesday. Many economists predict the Fed will trim its short-term benchmark fed funds rate by a quarter percentage point, in line with previous cuts. However, there are indications that the Fed’s pace of rate cuts may slow next year, particularly as the economy adjusts to new fiscal policies under the incoming Trump administration.

“This could be the last rate cut for a while,” said Jacob Channel, senior economist at LendingTree. “The Fed might choose to take a more cautious stance, especially with the potential resurgence of inflation in response to the Trump administration’s policies. It’s likely they will take a wait-and-see approach, possibly holding rates steady at their January meeting.”

Big Tech Shares Rally Amid Fed Concerns

Several Big Tech stocks saw impressive gains during the day’s trading:

• Broadcom (AVGO): The AI-chip company continued its strong rally, following a better-than-expected earnings report and a robust outlook. Shares have increased more than 120% this year, and Broadcom remains a top performer in the tech sector.

• Apple (AAPL): Shares of Apple rose as investors remain bullish on the company’s AI prospects. The company’s advancements in augmented reality (AR) and other innovative technologies are expected to continue driving growth.

• Tesla (TSLA): Electric vehicle maker Tesla saw strong stock performance as investors celebrated the company’s innovative strides in AI integration for autonomous driving.

Meanwhile, Bitcoin surged to an all-time high, crossing the $107,000 threshold. MicroStrategy, a leading business intelligence firm, announced it had purchased an additional 15,350 Bitcoin, bringing its total holdings to a staggering 439,000 BTC, worth around $46 billion. The rally in Bitcoin was a key point of interest for many investors, particularly as it marked an all-time high for the cryptocurrency, further solidifying its role in alternative investments.

Big Tech Shares Lead Winners and Losers in the Tech Space

While Big Tech shares propelled the Nasdaq to a new high, some companies experienced setbacks:

• Super Micro Computer (SMCI): The AI server company saw its shares fall after news broke that its auditor had resigned. Additionally, the company’s stock will be removed from the Nasdaq-100 index.

• Nvidia (NVDA): Despite being a leader in the AI-chip market, Nvidia’s shares slipped into correction territory. With shares down more than 10% from their high, many analysts believe money is flowing into other AI-related companies after Nvidia’s impressive 166% growth this year.

Global Markets React Ahead of Fed’s Announcement and Big Tech Shares' Impact

• Oil Prices: Crude oil prices dropped by 1%, settling at $70.58 per barrel, after disappointing Chinese retail sales data. The slowdown in China, the world’s largest oil importer, raised concerns about demand.

• Treasury Yields: The 10-year Treasury yield fell to 4.397%, as market participants remained cautious ahead of the Fed’s anticipated rate cut and its broader economic outlook for 2025.

Bitcoin’s Role in the Market Rally and Big Tech Shares' Influence

As Bitcoin continues to climb, reaching its new high, the cryptocurrency market’s potential to offer alternative investments remains at the forefront of investor minds. The rally in Bitcoin coincides with the surge in Big Tech shares, which together contribute to the ongoing market growth despite broader uncertainties. Bitcoin’s momentum suggests that digital assets are becoming more integrated into mainstream investment portfolios, reflecting growing confidence in the cryptocurrency as a hedge against economic uncertainty.

Looking Ahead to the Fed’s Decision and Big Tech Shares Performance

As investors eagerly await the Fed’s decision, the focus will be on its future interest rate strategy. If the Fed signals a shift in policy or maintains its cautious stance, it could have a profound impact on both Big Tech shares and Bitcoin as key market drivers. With tech companies and cryptocurrencies like Bitcoin at the heart of market rallies, their performance will likely remain a central theme as the year progresses.