3/1/2024

Nasdaq reaches record closing level

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Key points:

  • The Nasdaq Composite Index broke a closing record of 16,091.92 for the first time in 2.5 years.
  • The rise of 0.90% (144.18 points) exceeded the previous 2021 record.
  • Optimism around artificial intelligence is pushing the Nasdaq to new heights.

On Thursday, the Nasdaq reached a record high in trading results for the first time in more than two years. This was facilitated by the optimism of investors and traders associated with the boom in the field of artificial intelligence. Rising shares of Nvidia and other big tech stocks pushed the index to new highs.

The Nasdaq rose 144.18 points (0.90%) to 16,091.92. This surpassed the previous closing record on November 19, 2021, which was 16,057.44.

Support for the AI factor shows no sign of diminishing

Nvidia replacing Tesla as the most traded company on Wall Street symbolizes the market’s growing interest in artificial intelligence.

The Santa Clara, California-based company dominates the high-performance AI chip market, controlling about 80% of it. Nvidia supplies giants such as ChatGPT OpenAI, Microsoft, Alphabet and Meta Platforms, which are vying for leadership in the booming generative artificial intelligence sector.

Nvidia shares rose 1.9% on Thursday. A week ago, the company set a Wall Street record, increasing its capitalization by $277 billion in one session, after forecasting a threefold increase in quarterly revenue.

Nasdaq’s long-awaited success

The Nasdaq became the latest of Wall Street’s three major indexes to top. After a protracted decline in 2022, the S&P 500 has been hitting record after record since late January, with the Dow Jones back to its 2023 record highs.

On the Nasdaq, the uptrend began after the December 2022 low, when the decline from the November 2021 peak exceeded 30%. The move was driven by a sell-off in high-valuation growth stocks, driven by investor concerns about inflation and rising interest rates.

The Nasdaq has risen in recent months on optimism that the Fed will cut rates soon and euphoria around AI technology.

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