Tesla Stock 11% Surge This Week Leads Nasdaq to Record High, As Big Tech Surge
Stock markets had another great week, with Nasdaq leading the way in the US, as tech stocks continued to attract strong demand.
The US stock market reached new highs today, driven largely by the strong performance of mega-cap tech companies. Tesla, Amazon and other tech giants have been standout performers this week, with Tesla’s recent success particularly notable, as the stock surged 11% this week.
Impact of The NFP Report on Markets
Today’s Non-Farm Payroll (NFP) report showed a rebound in the US labor market for November. However, earlier in the week, other job-related data revealed some underlying weakness. This mixed picture contributed to:
- A 5 basis point drop in 2-year Treasury yields.
- A rise in the odds of a December Fed rate cut, increasing from 70% to 85%.
These developments bolstered demand for USD-denominated assets, including mega-cap tech stocks, which drove the tech-heavy indices to all-time highs.
Sector Performance
- Technology Sector: Mega-cap tech stocks led the charge, with Tesla (TSLA) rising by 1.8% in the Technology & Consumer Cyclical category, signaling investor confidence in its future prospects. Microsoft (MSFT) also gained 0.5%, further supporting the sector.
- Semiconductors: This segment saw modest declines, contrasting with the overall strength of the technology sector.
US Stock Market Performance
Daily Changes
- S&P 500: +0.3%
- Nasdaq Composite: +0.8%
- Dow Jones Industrial Average (DJIA): +0.3%
- Russell 2000: +0.4%
- Toronto TSX Composite: +0.1%
Weekly Changes
- S&P 500: +1.0%
- Nasdaq Composite: +3.4%
- DJIA: -0.6%
- Russell 2000: -1.1%
- Toronto TSX Composite: +0.2%
European Markets
Meanwhile, in Europe, the German DAX closed flat today but posted an impressive weekly gain of 3.8%. This strong performance comes despite ongoing challenges in the energy and automotive sectors, suggesting potential resilience in European equities.
European Equity Market Performance
Daily Changes
- Stoxx 600: +0.1%
- German DAX: +0.1%
- France CAC 40: +1.3%
- UK FTSE 100: -0.5%
- Spain IBEX: -0.5%
- Italy’s FTSE MIB: +0.3%
Weekly Changes
- Stoxx 600: +1.9%
- German DAX: +3.8%
- France CAC 40: +2.7%
- UK FTSE 100: +0.25%
- Spain IBEX: +3.6%
- Italy’s FTSE MIB: +3.9%
While mega-cap tech continues to dominate the US stock market, the broader implications of this week’s economic data and policy expectations could shape investor sentiment heading into the coming weeks. Similarly, the DAX’s robust week raises the question of whether the eurozone’s economic and market conditions might improve, hinting at brighter times for the euro.
S&P 500 Live Chart
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