[Christian Harris]

The Nasdaq Composite has hit a historic milestone, closing at an all-time high of 21,763.98, a remarkable testament to its explosive growth.

Over the past four years, the index has doubled in value, with a 33.5% gain recorded in 2024 alone.

This rally underscores the dominance of technology stocks in shaping market dynamics, particularly the outsized contributions of Big Tech’s so-called “Magnificent Seven.”

On Wednesday, these tech titans collectively added an astonishing $416 billion to their market capitalisation, surpassing the combined value of corporate heavyweights like Netflix and Procter & Gamble.

Driving this surge were standout performances from Tesla and Alphabet, which soared by 23% and 16%, respectively, in December.

These gains highlight the continued investor confidence in innovation-led companies, particularly in areas such as electric vehicles, artificial intelligence, and cloud computing.

Other members of the Magnificent Seven also achieved fresh highs during the session, despite a modest decline in Apple’s stock.

This divergence reflects nuanced investor preferences, with certain companies benefiting from sector-specific tailwinds while others encounter short-term challenges.

The Nasdaq’s record-breaking performance is bolstered by robust earnings reports, strong consumer demand for tech products, and favourable macroeconomic conditions, such as stabilising interest rates.

With Big Tech driving this momentum, the index remains a beacon of growth potential, though some analysts caution about potential overvaluation risks as stocks soar to unprecedented levels.

As the year winds down, market participants are closely watching whether the Nasdaq can maintain its momentum into 2025, given the evolving landscape of regulatory scrutiny and global economic challenges.

Nonetheless, the index’s latest milestone reaffirms its pivotal role in shaping the future of financial markets.

Data: eToro, MarketScreener

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