Santa Rally is Coming? Surging Tech Stocks Led by Magnificent Seven Stocks Pushed the Nasdaq Past 20,000 Points

 

On December 11, tech stocks in the US market surged, pushing the Nasdaq Composite Index (NASDAQ: .IXIC) to rise 1.77% above 20,000 points. This met Wedbush Securities analyst Dan Ives' prediction of a 25% rise in tech stocks, pushing the Nasdaq up over 20,000 points.

 

On the same day, the US Department of Labor announced November's Consumer Price Index (CPI) rose 0.3% quarter-on-quarter and 2.7% year-on-year. Subsequently, the CBOE Volatility Index (INDEXCBOE: VIX) fell 4.23%, implying that the market has few notable risks with stocks rising.

 

Spartan Capital Securities' Peter Cardillo explained that the Nasdaq rose on the prospect of a Fed rate cut next week and could jump further.

 

The performance of Nasdaq constituent stocks in terms of gains over 2024 is as follows. Applovin (NASDAQ: APP) rose over 700%. MicroStrategy (NASDAQ: MSTR) grew over 550%. Palantir (NASDAQ: PLTR) jumped up over 322%. Robinhood (NASDAQ: HOOD) and NVIDIA (NASDAQ: NVDA) nearly doubled.

 

Simultaneously, Magnificent Seven Stocks rose. Amazon (NASDAQ: AMZN), Google-A (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA) gained record highs. Among them, Google accumulated a four-day 13% rise after announcing a chip with superior computing power for quantum computers. Apple rose to a new high once but closed down 0.52%.

 

The market eyes tech stocks. Brokerage firm Wedbush believed that Andrew Ferguson becoming chair of the Federal Trade Commission greatly benefits large technology companies. Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORCL), Alphabet, Amazon, and Tesla have launched mergers and acquisitions to expand their core competencies.

 

This December, the US market is expected to have a Santa Claus Rally. Historically, investors went long, leading US stocks to rise in the seven trading days after Christmas (the five trading days at the end of the year and the first two trading days of the following year), and causing a Santa Claus Rally. Data shows that the S&P 500 has an 80% chance of rallying during Christmas.

 

Separately, sources said that US President-elect Donald Trump planned to ring the opening bell at the New York Stock Exchange today, December 12th. Trump is believed to use the market performance to weigh economic policies and promote tax cuts and deregulation during his term, helping the market to rise. Trump's interaction with Wall Street this time made the market positive about his economic policies.