Nasdaq Composite Crosses 20,000 for First Time | Global News Avenue

this Nasdaq Composite Index The index topped 20,000 for the first time on Wednesday as inflation data confirmed Wall Street’s expectations for another rate cut later this month and Big Tech stocks surged.

In late trading Wednesday, the Nasdaq rose 1.8% to 20,050 points. Most stocks rise after new consumer inflation data meet expectationsassuring investors that Fed officials will cut interest rates for the third time this year when they meet next week.

Large-cap technology stocks were particularly strong. Alphabet stock (Google)(Google) rose more than 4% for a second day in a row after Google parent unveiling Quantum computing chip. Tesla stock (Tesla) also rose more than 4%, hitting a record high for the first time since 2021.NVDA) shares rose 3%, while Amazon (Amazon) and yuan (Mehta) rose about 2%.

Nasdaq’s Road to 20K

It took the Nasdaq about four and a half years to double after first topping 10,000 in June 2020, just as stocks were rebounding from the Covid-19 sell-off in March.

Technology stocks account for nearly 60% capitalization weighted indexdriving the index’s performance in recent years. The tech industry soared in 2020 and 2021 as Covid-19 lockdowns forced more of daily life onto digital platforms. Technology companies suffered a deceleration in 2022, as economic growth slowed and gradually returned partially to pre-pandemic life. The release of ChatGPT in late 2022 reinvigorated the industry, sparking an AI boom that spawned the Big Seven and propelled tech stocks to today’s all-time highs.

The Nasdaq has returned nearly 19% annually since 2020, beating the average return of the tech-heavy S&P 500 over the same period and nearly double the average return of the index since its inception in 1957 .