Nasdaq reaches 20,000 for first time as AI rally continues

Nasdaq reaches 20,000 for first time as AI rally continues

New York: The Nasdaq breached the 20,000-point mark on Wednesday, as technology stocks showed no signs of slowing on hopes of looser regulation under Donald Trump’s presidency and bets on AI-fueled earnings growth next quarter.

The tech-heavy index rose 1.6% to hit an all-time high of 20001.42 points.

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Currently, all three companies make up the $3-trillion club, with the iPhone maker holding a narrow lead.

The index reached 19,000 points for the first time in early November when Donald Trump won the US presidential election and his Republican Party won both houses of Congress.

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    US equities hope that Trump’s policies on tax cuts and looser regulation can support big tech companies and that the Federal Reserve’s monetary easing can keep the US economy humming.

    The S&P 500 rose on Wednesday after recent inflation data boosted the Federal Reserve’s cut in interest rates later this month, while the Dow was pressured by declines in UnitedHealth.

    A report from the Labor Department showed that US consumer prices rose by the most in seven months in November, though broadly in line with market expectations.

    “There was some fear that you had an upside surprise to inflation and that the Fed might reconsider cutting next week,” said Tom Bruce, macro investment strategist at Tanglewood Total Wealth Management.

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