Investing.com — Nasdaq Hits Record High

The Nasdaq closed at a record high on Monday as technology stocks excelled ahead of the final Federal Reserve meeting of the year.

At 4:00 p.m. ET (21:00 GMT), the NASDAQ Composite rose 1.1% to a record close of 20,173.74. The Dow Jones Industrial Average decreased by 0.3%, while the S&P 500 increased by 0.4%.

Broadcom's Surge Lifts Chips; Tesla Hits Record High; Ford Falls on Downgrade

Broadcom Inc (NASDAQ:AVGO) increased by more than 10%, boosting the broader semiconductor sector as Wall Street remains optimistic about the stock following strong quarterly results last week.

Broadcom's market cap has surged by over $300B since its earnings report, according to Vital Knowledge.

Tesla Inc (NASDAQ:TSLA) also reached a new record high as the electric vehicle maker continues its rally post-election, pushing its market cap to around $1.45T. Wedbush raised its price target from $400 to $515, predicting it may hit $650 by the end of next year.

MicroStrategy (NASDAQ:MSTR) closed flat after being announced as a new member of the Nasdaq 100 index.

Ford Motor Company (NYSE:F) dropped 4% after Jefferies downgraded its shares from hold to underperform due to concerns about excess inventory.

Capri Holdings (NYSE:CPRI) shares increased by 4% following reports that the company is exploring potential buyers for its Versace and Jimmy Choo brands, with Barclays (LON:BARC) facilitating the discussions. The outcome remains uncertain regarding whether the brands will be sold together or separately.

Honeywell International Inc (NASDAQ:HON) rose over 3% after announcing it might spin off its aerospace division amid pressure from activist investors.

Fed Rate Cut Expected, 2025 Outlook in Focus

The Fed is expected to cut interest rates by 25 basis points at the end of a two-day meeting on Wednesday, continuing its easing cycle initiated earlier this year. This would mean a total decrease of 100 bps in 2024.

Attention will focus on the Fed’s future easing plans amidst ongoing inflation concerns and a resilient labor market. Analysts anticipate a slower rate cut pace next year, reflected in comments from Fed officials.

Traders are pricing a 79.7% chance that the Fed will maintain current rates in January, according to CME Fedwatch.

Preliminary S&P Global PMI activity data will also be examined for insights into the economy's strength.

(Contributed by Peter Nurse, Ambar Warrick)