Nasdaq Hits New High. How?

Nasdaq Hits New High. How?

The Nasdaq Composite surpassed 20,000 points for the first time, closing Wednesday at 20,034.89, TradingView detailed. This was partly driven by the fact that November’s CPI numbers aligned with analysts’ expectations, reinforcing predictions of a quarter-point US Federal Reserve rate cut next week. Year-to-date, the Nasdaq has gained over 30%, continuing a bull market rally that began in May 2023. The index’s surge was powered by record highs from tech giants like Alphabet [GOOGL], Amazon [AMZN] and Meta [META].

Zuck Sends Friend Request to Trump

Last week, Meta’s Head of Global Affairs Nick Clegg said that CEO Mark Zuckerberg wanted to play “an active role in the debates that any administration needs to have about maintaining America’s leadership in the technological sphere”, the Financial Times reported. Zuckerberg this week duly donated $1m to a fund towards Donald Trump’s inauguration event; Trump has previously accused the social media of censoring right-wing voices.

Nvidia Sets Sights on Autonomous Cars

The chipmaker [NVDA] has increased its workforce in China by 33% this year, targeting 4,000 employees by year-end, up from some 3,000 in January. One focus of the expansion is on autonomous vehicle technologies, with around 200 new hires in Beijing for self-driving research, according to Bloomberg sources. Nvidia has also bolstered its networking software and after-sales service teams in China, highlighting the country’s significance as both a market and a research hub, despite US-China trade tensions. 

Wall Street Unruffled by Medtronic’s Rough Month

The Medtronic [MDT] share price extended its losing streak to seven sessions, falling 0.7% to $82.94 on Wednesday; over the past month, the stock is down 6%, although it is up nearly 2% year-to-date. Nonetheless, Wall Street analysts remain optimistic about Medtronic’s prospects. Of 33 analysts covering the stock, Seeking Alpha noted, 17 rate it as a ‘buy’ or higher, 14 as a ‘hold’, and only two recommend ‘sell’ or below. Last month, OPTO unpacked Medtronic’s impressive recent trajectory, observing that, while its revenue growth for the next couple of fiscal years may prove muted, it will at least be steady if demand for its medical devices increases.

A Step Closer to AI “Agents”

Alphabet’s Google this week introduced a more advanced version of its Gemini artificial intelligence (AI) model, capable of performing tasks on users’ behalf, the Financial Times reported. Alongside the upgraded model, Google unveiled two “AI agents”, Project Astra and Project Mariner, designed to answer real-time queries across text, video and audio formats. These prototypes, currently in testing in the US and UK, reflect Google’s commitment to integrating generative AI into consumer experiences.

Drugmaker Climbs as NVO Deal Looks Likely

Catalent [CTLT] shares gained 1.6% following a report suggesting its $16.5bn acquisition by Novo Holdings — the holding company for Novo Nordisk [NVO] — could close as early as Monday. The European Commission approved the deal last Friday, and the US Federal Trade Commission has no significant objections at this time, Seeking Alpha reported. Novo has reportedly been negotiating contract extensions with certain drugmakers to address regulatory concerns, signaling efforts to ensure the deal’s smooth completion by the end of the year.

Is Adobe Struggling?

The Photoshop maker [ADBE] dropped nearly 6.5% in after-hours trading on Wednesday following weaker-than-expected guidance for fiscal 2025. The company forecast adjusted earnings between $20.20 and $20.50 per share, with the midpoint of $20.35 below analysts’ estimate of $20.52. Revenue guidance for the year is projected at $23.3bn–23.55bn, short of the $23.8bn consensus. Back in September, OPTO tracked the stock’s downwards trend — a trend that has only continued since.