Nasdaq Hits All-Time High—First Since July As Tesla Stock Leads Tech Rally

Topline

The Nasdaq Composite jumped to an all-time high Friday, a first for the tech-heavy stock index in more than three months as the group shook off tailwinds such as rising bond yields and enjoyed a boost from Tesla’s share price.

A new tech stock high was set Friday.

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Key Facts

The Nasdaq rose as much as 1.5% to a new record of 18.690.01, surpassing the previous high set July 11.

Predictably leading the way for the Nasdaq were the “magnificent seven” behemoths, with Amazon, Facebook parent Meta, Google parent Alphabet, Microsoft, Nvidia and Tesla stocks all rising at least 1.5% by midmorning, with Tesla’s near 3% gain leading the group and Apple stock’s 0.7% advance trailing those of its peers.

The less tech-exposed S&P 500 and Dow Jones Industrial Average indexes rose 0.5% and 0.8%, respectively, short of their all-time highs set last week.

Big Number

25%. That’s how much shares of the electric vehicle giant Tesla are up since Wednesday, as its third-quarter earnings report impressed investors.

Key Background

The Nasdaq was much harder-hit by this summer’s economic growth scare selloff than the more industry-neutral Dow and S&P, as the Nasdaq fell into a more than 10% correction in August as the market sold off on tech companies thought to be more sensitive to a potential recession. But data over the last two months have shown little signs of an economic slowdown, helping restore faith in the earnings growth trajectory necessary to justify the Nasdaq’s more than 70% gain over the last two years. Much of that rally is tied to investor excitement over the profit potential for tech companies stemming from the exploding interest in artificial intelligence. Nvidia, which is the primary architect of the semiconductor technology powering generative AI, is the poster child of this rally, growing its market capitalization from less than $300 billion in Oct. 2022 to $3.5 trillion Friday.

What To Watch For

Tech stocks will face several tests next week as major third-quarter results come in. Alphabet, Amazon Apple, Meta, Microsoft and Uber are among the companies whose earnings reports will out between next Tuesday and Thursday.