Nasdaq 100 Index breaks to new all-time record

The Nasdaq 100 reached a record high.

He spent two years doing this.

The S&P 500 index is nearing its all-time high, and the Dow Jones has been steadily climbing for several days.

The market is abuzz with excitement in anticipation of a potential Fed rate cut in the coming year.

On Tuesday, the US stock market closed higher for the ninth consecutive day, with the Nasdaq 100 index reaching a record high of 16,800.33 points. This was the highest point the index had reached since November 22, 2021, more than two years ago.

”A rally was held due to a shift in the FOMC's predictions, which now anticipate three rate cuts in the coming year from the current rate, as opposed to the previous forecast of a rate hike this year and two cuts in 2024.

The FxPro analyst team notes that, despite the markets expecting five downgrades over the next year a couple of weeks ago, the reversal in rhetoric has buoyed futures.

Since the start of the year, the Nasdaq 100 index of US technology companies has seen a 53% increase - the highest surge since the tech boom of 1999. The greatest growth in the index was driven by the shares of three companies.

Year-to-date, Apple has seen a 52% increase, contributing 4.9% to the Nasdaq's total growth. Microsoft, on the other hand, has provided a 56% return, making up 4.6% of the Nasdaq's total earnings.

NVIDIA has seen an incredible increase of 244% in its year-to-date performance, contributing 4% to the Nasdaq 100 index's total return in 2023. This makes NVIDIA the top performer among all Nasdaq 100 components.

Charles Schwab is cautioning investors to not get too carried away with their enthusiasm, and he does not discount the possibility of a market decline in the near future as the year draws to a close.

The FxPro analyst team is warning investors to be cautious with their bets on the imminent decline in indices, as we could see both prolonged consolidation and new highs despite the extremes and obvious overbought.