Nasdaq Reaches New Heights Amid Mixed Market Reactions and Fed Speculations
The Nasdaq closed at a record high, driven by gains in Microsoft and Tesla amidst investor expectations of interest rate cuts by the Federal Reserve. Despite a dip in consumer sentiment and mixed index performances, AI trade resurgence and Oracle's forecast boosted market confidence. Vaccine makers' stocks fell amid troubling reports.
In a mixed market session on Friday, the Nasdaq achieved a record-closing high, spurred by significant gains from tech giants Microsoft and Tesla. Speculation is mounting over potential interest rate cuts by the Federal Reserve, anticipated in response to employment and inflation challenges.
Microsoft saw a 1.8% rise following its strategic move to avert a hefty EU antitrust fine by revising its Office product pricing. Meanwhile, Tesla's stock jumped 7.4% as board chair Robyn Denholm addressed CEO Elon Musk's political activities, affirming his crucial role within the company.
Not all sectors shared in the buoyancy; the Dow remained in negative territory, with the S&P 500 recording fractional losses. The decline in U.S. consumer sentiment for the second consecutive month underscores rising business and labor market risks, influencing market attitudes as the Fed meeting approaches.
(With inputs from agencies.)
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