Investing.com — The Nasdaq closed at a record high Monday as technology continued to excel ahead of the Federal Reserve’s final policy meeting of the year.
At 4:00 PM ET (21:00 GMT), the price climbed 1.1% to a record close of 20,173.74. The price fell by 0.3% and increased by 0.4%.
Broadcom’s surge lift chips; Tesla reaches a new record; Ford falls on downgrade
Broadcom Inc (NASDAQ:) rose more than 10%, boosting the broader semiconductor sector as Wall Street continues to make bullish calls on the stock following the chipmaker’s stronger quarterly results released last week.
The Broadcom market is up more than $300 billion since earnings were reported Thursday evening, Vital Knowledge said in a Monday note.
Tesla Inc (NASDAQ:), meanwhile, is closing at a new record high as the EV maker continues its post-election rally, pushing its market cap to around $1.45 trillion. Wedbush raised his price target for the company from $400 to $515, predicting it could reach $650 by the end of next year.
MicroStrategy (NASDAQ:) stock gave up gains and remained flat even though it was announced as a new addition to the .
Ford Motor Company (NYSE:), meanwhile, fell 4% after Jefferies downgraded the stock to underperform from watch, citing concerns about excess inventory.
Shares of Capri Holdings (NYSE:) rose 4% after Women’s Wear Daily reported that the company is exploring potential buyers for its Versace and Jimmy Choo brands, in partnership with Barclays (LON:) to facilitate the process.
Although discussions are still in the early stages, it remains unclear whether the two brands will be sold together, separately or at all.
Honeywell International Inc (NASDAQ:), meanwhile, rose more than 3% after announcing it is considering the possibility of spinning off its aerospace division. The move comes under pressure from activist investors.
Fed rate cut coming, 2025 outlook in focus
The Fed is widely expected to do so at the end of a two-day meeting on Wednesday, after the central bank initiated an easing cycle earlier this year.
This move will lower interest rates by a total of 100 basis points in 2024.
But this week the focus will be squarely on the central bank’s plans for future easing, especially in light of potentially persistent inflation and labor market resilience.
Analysts broadly expected the central bank to signal a slower pace of rate cuts in the coming year, with recent comments from Fed officials also pointing to this.
Traders were pricing in a 79.7% chance that the Fed would leave rates unchanged at its January meeting, it showed.
Preliminary activity data will also be studied for clues to the strength of the economy.
(Peter Nurse, Ambar Warrick contributed to this article.)