Nasdaq hits record high in December fueled by tech stocks, AI boom, and Fed rate cuts

From Nasdaq: 2024-12-04 10:00:00

Wall Street continued its winning streak in December, with the Nasdaq hitting a new all-time high and achieving its 34th record closing high of the year. The tech-heavy index is up about 30% this year, outperforming other indices. Surging tech stocks, the AI boom, and Fed rate cuts are driving gains.

Invesco QQQ, a proxy to the Nasdaq Index, has gained 26.4% year-to-date. Top-performing stocks in QQQ include AppLovin, NVIDIA, Constellation Energy, Arm Holdings, and Netflix. These stocks have seen significant gains in 2024, with AppLovin soaring 820% and NVIDIA jumping 183.2%.

The AI boom is fueling growth in the tech sector, with companies investing in AI technology. The generative AI market is expected to grow at a CAGR of 42% to $1.3 trillion over the next 10 years. Lower interest rates are also boosting stocks in December, with markets predicting a 65.4% chance of a 25-bps rate cut.

Invesco QQQ offers exposure to the largest domestic and international non-financial companies listed on the Nasdaq. With an AUM of $313.8 billion, QQQ has seen significant growth this year. Top stocks in the ETF include AppLovin, NVIDIA, Constellation Energy, Arm Holdings, and Netflix, all of which have contributed to the fund’s success.



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