The Nasdaq Composite Index achieved a historic milestone on Wednesday, reaching 20,000 for the first time, driven by enthusiasm surrounding artificial intelligence and anticipated interest rate reductions that propelled technology stocks to remarkable heights.
The technology-focused index has risen over 33% this year, led by major tech firms including Apple, Nvidia, Alphabet, and recently Tesla. The gains on Wednesday followed a US inflation report that strengthened expectations for a Federal Reserve rate reduction next week.
The index concluded Wednesday’s trading at 20,034.89, representing a 1.8% daily increase.
The current rally has benefited investors focused on growth and technology sectors, whilst raising concerns about elevated valuations and the increasing influence of large-capitalisation stocks within the index.