Tuesday, December 19, 2023, stands now as a remarkable day in Wall Street’s history, as the technology stocks of the Nasdaq 100 mark a significant milestone, surging to new highs after a hiatus of 758 days since their previous peak.
The tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust QQQ, hit 16,800 points in early morning trading in New York, marking a year-to-date performance of 54%, the strongest since the dot-com boom of 1999.
Currently, 92% of the stocks in the Nasdaq 100 index have risen above their respective 50-day moving averages, indicating widespread gains in the tech sector.
But the robust bullish sentiment was not limited to tech stocks alone. All 11 S&P 500 sectors traded in the green.
Small caps included in the Russell 2000, as tracked by the iShares Russell 2000 ETF IWM, are once again outperforming large-cap indices, reaching their highest point since August 2022.
The dollar continues to weaken as the markets ignore the warnings from Fed officials. Following presidents John C. Williams, Loretta Mester and Austan Goolsbee, Richmond Fed President Thomas Barkin also joined the list of figures urging caution regarding rate cuts.
Barkin stated the Fed is making good progress in addressing inflation but cautioned it’s too early to discuss rate cuts. He also expressed his belief that inflation is proving to be more persistent than what the average Fed official anticipates.
Treasury yields remain stable with the 10-year yield at 3.90%. Gold, tracked by SPDR Gold Trust GLD, added a 0.7% gain at $2,040/oz., while Bitcoin BTC/USD fell by 1.4%. Oil was on the rise, with WTI trading at $74 per barrel, up by 1.5%.
Chart Of The Day: Nasdaq 100 Rises To Record Highs, Up 54% Year To Date
Tuesday Performance In Major U.S. Indices, ETFs
| Major Indices & ETFs | Price | % Change |
|---|---|---|
| Russell 2000 | 2,012.06 | 1.5% |
| Dow Jones | 37,488.04 | 0.5% |
| S&P 500 | 4,758.69 | 0.4% |
| Nasdaq 100 | 16,780.29 | 0.3% |
The SPDR S&P 500 ETF Trust SPY was 0.4% higher to $474.03, the SPDR Dow Jones Industrial Average ETF DIA was 0.5% higher to $374.77 and the Invesco QQQ Trust inched 0.3% up to $408.40, according to Benzinga Pro data.
Sector-wise, the Materials Select Sector SPDR Fund XLB outperformed, up 1%. Energy, as tracked by the Energy Select Sector SPDR Fund XLE, followed suit, up 0.9%.
Among the standout industries, the VanEck Gold Miners ETF GDX rose by 2.9%, and the Invesco Solar ETF TAN increased by 3.5%.
| S&P Sector ETFs | % Change |
|---|---|
| Materials | 1.0% |
| Energy | 1.0% |
| Real Estate | 0.8% |
| Communications | 0.8% |
| Industrials | 0.7% |
| Consumer Discretionary | 0.6% |
| Financials | 0.6% |
| Health Care | 0.4% |
| Utilities | 0.4% |
| Technology | 0.3% |
| Consumer Staples | 0.0% |
Latest Economic Data
- U.S. housing starts saw a substantial increase of 14.8% month-over-month, reaching an annual rate of 1.56 million in November 2023. This rate, the most robust in half a year, surpasses analyst predictions which were set at around 1.36 million. The surge is attributed to declining mortgage rates coupled with a shortage in housing inventory. Single-family home construction experienced a notable rise of 18%, hitting a peak not seen since April of the previous year at 1.143 million units.
- November 2023 witnessed a 2.5% decline in U.S. building permits, settling at a seasonally adjusted annual pace of 1.46 million, slightly missing market projections of 1.47 million.
Tuesday’s Stock Movers
- Illumina Inc. ILMN rose over 5% after activist investor Carl Icahn said that he plans to oust legacy-conflicted directors at the company.
- Moderna Inc. MRNA, Pfizer Inc. PFE were both 3.5% higher, after the World Health Organization (WHO) classified the JN.1 coronavirus strain as a “variant of interest” on Tuesday.
- Enphase Energy Inc. ENPH rose 7% after the company said it will cut its global workforce by about 10%. First Solar Inc. FSLR rose 5.4%.
- Affirm Holdings Inc. AFRM rose as much as 15% as the company expands partnership with Walmart Inc. WMT
- Ginkgo Bioworks Holdings, Inc. DNA rose over 9% as the company revealed to have obtained funding through the U.S. Department of Energy’s Bioenergy Technologies Officer.
- Robinhood Markets, Inc. HOOD rose 6.7% on a positive market momentum.
- Pulse Biosciences, Inc. PLSE rocketed 29%, leading within the stocks of the Russell 2000 index.
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