Nasdaq Hits Record High as Fed Meeting Looms
The Nasdaq Composite reached an all-time high on Monday, driven by a surge in mega-cap technology stocks, as investors eagerly await the Federal Reserve’s final policy meeting of the year. The tech-heavy index closed at 20,173.89, up 1.24%, while the S&P 500 gained 0.38% to finish at 6,074.08.
Market gains were led by significant jumps in Tesla, Alphabet, and Broadcom stocks. However, the Dow Jones Industrial Average bucked the trend, falling over 100 points to 43,717.48, marking its eighth consecutive day of losses.
All eyes are now on the Federal Reserve’s upcoming meeting, where a 25 basis point interest rate cut is widely anticipated. Investors are particularly focused on the release of November’s Core PCE data, which could provide crucial insights into future Fed policy decisions.
The Federal Open Market Committee (FOMC) is expected to deliver what some analysts are calling a “hawkish cut,” potentially signaling a multi-month pause in further rate reductions. Commentary from major financial institutions, including Goldman Sachs, Yardeni Research, and Apollo, suggests that limited inflation progress and a robust economy may influence the Fed’s stance.
Fed Chair Jerome Powell is expected to emphasize a cautious approach to further easing in his post-meeting remarks, given the current economic landscape.
In the coming days, investors will closely monitor several key economic data releases. U.S. retail sales figures are due on Tuesday, followed by housing starts and building permits data on Wednesday. Revised third-quarter GDP figures will be announced on Thursday, potentially providing further context for the Fed’s decision-making process.
In other market developments, Bitcoin surged to a new record above $107,000, reflecting growing interest from institutional investors. Wall Street analysts have also begun releasing their 2025 S&P 500 targets, offering a glimpse into long-term market expectations.
As the week unfolds, market participants will remain vigilant, balancing optimism over potential rate cuts with concerns about economic indicators and geopolitical developments.