Nasdaq Index Trades At Record Highs

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Nasdaq Index Trades At Record Highs

Nasdaq Index And SP 500 Trades At Record Highs

The two major US stock indexes, including the Nasdaq and S&P 500, are trading at record highs. The upside in the US stock indices is driven by the rally in the Megacap stocks, especially the tech sector.

We are only hours away from Powell's testimony, and it is expected to be a highly volatile event for the US stocks. Any announcement of rate cuts will be welcomed by the US stocks and will lead to more upside.

Powells Testimony Awaited By Us Markets

Jerome Powell has already commented on how positive economic data will bolster the case for rate cuts this year. Earlier, the market was expecting the first rate cut to happen in December, but that has now shifted to September 2024.

Nasdaq, which is the favorite AI chip company of investors, has gained 4% for the day. Similarly, Applied Materials has gained 2% while the Micron Technology (MU) is up by 3%. Additionally, the Philadelphia SE Semiconductor index is also sitting at record highs, which represents the positive sentiment of the market.

The S&P 500 index is benefiting from the fact that it includes a lot of top tech companies such as GOOGL, AAPL, META, & others. All of these stocks are up for the day in anticipation that Powell's speech will confirm the rate cuts.

Monday also marked the 35th time that the S&P 500 index has made a fresh closing in 2024. All of this is attributed to the upside seen in AI stocks and other tech companies.

However, the one outlier is DJIA, which is underperforming due to the 2% decline seen in Salesforce's price (CRM). So, it is safe to say that Salesforce remains a major drag on the DJIA index.

Meanwhile, Powell is expected to talk about how the inflation situation has improved in the last few months. He will also likely talk about how the inflation levels still remain higher than normal.

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