Tech Surge Pushes US Stocks to Record Highs

A strong US economic outlook and a bullish tech sector are driving market gains, with a tech rally propelling the Nasdaq Composite to a record close at 19,859.77, marking a 3.34% weekly increase. This optimistic trend follows Federal Reserve Chair Jerome Powell's assurance that the US economy is in 'remarkably good shape.' Strong earnings from tech companies have further fueled the rally, bolstering investor confidence.

Fed's Remarks Spark Confidence

Powell's recent comments at the New York Times DealBook Summit have significantly boosted investor confidence, fueling optimism about a potential Federal Reserve interest rate cut in December. Traders now estimate nearly 77% odds for this move, reflecting heightened market expectations.

Tech Giants Reach New Heights

Tech giants Amazon (AMZN) and Apple (AAPL) made impressive strides last week. Amazon hit new intraday highs on Wednesday, showcasing its continued strength in the cloud and e-commerce sectors. Apple also achieved record-breaking intraday levels. Adding to the excitement, Nvidia (NVDA), famed for its AI chips, saw significant gains, nearing its own record high and highlighting the robust performance in the tech industry.

Salesforce and Marvell Stocks Surge on Earnings

Salesforce (CRM) saw a notable 9.70% surge in its stock value, largely due to quarterly revenue results that surpassed expectations. This bolstered investor confidence in its burgeoning AI product line. Meanwhile, Marvell Technology (MRVL) experienced a significant rally following strong results, with its stock climbing 22.46% to a record high. The chipmaker's optimistic fourth-quarter revenue forecast, exceeding analyst estimates, further energised the market and underscored the strength of tech companies' financial performance.

ETF Performance

Information Technology ETFs gained 3.38% over the week, achieving an impressive year-to-date performance of +37.95%. The First Trust Cloud Computing UCITS ETF (FSKY) and the iShares STOXX Europe 600 Technology UCITS ETF (EXV3) were the biggest winners, increasing by 6.90% and 4.90% respectively.

Here is a comparison of Information Technology ETFs

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.