Nasdaq hits record as tech continues rally

Investing.com -- The Nasdaq hit a record high Monday, underpinned by an intel-led rise in chip stocks and an ongoing rally in Tesla. 

At 1.07 p.m. ET (1807 GMT), the NASDAQ Composite surged 1% and had earlier hit an intraday record high of 19,436.92.  The Dow Jones Futures fell 0.28%, or 129 points, S&P 500 rose 0.3%. Intel, Tesla lead gains

Intel Corporation (NASDAQ:INTC ) jumped more than 3% after announcing that chief executive Pat Gelsinger had resigned following a rocky tenure that saw the chipmaker's shares plunged as it fell further behind in the AI race.

"We credit Gelsinger for making some significant changes at the company, but in our view he didn't move fast enough or go far enough," Truist Securities said in a note. 

Super Micro Computer Inc (NASDAQ:SMCI ) rose more than 28%, providing a further lift to chip stocks after the AI server maker said that a special committee had found no evidence of misconduct among the company's leadership.

Tesla Inc (NASDAQ:TSLA ) jumped 3%, adding to its recent gains after Roth MTM upgraded the stock to buy from neutral on expectations that the EV maker CEO Elon Musk's close relationship with President-elect Donald Trump will benefit the company. Focus on tariffs and Fed policy

Investors are digesting tariff-related comments from President-elect Donald Trump, who stated over the weekend that he would impose 100% tariffs on BRICS nations—including China, Russia, and India—if they pursue a new currency to rival the U.S. dollar. This added a geopolitical edge to market concerns.

"There are a lot of conflicting macro and micro developments for investors to juggle this morning," Vital Knowledge analysts wrote in a Monday morning note.

"The US equity narrative isn’t shifting dramatically, with favorable year-end/post-election seasonality and momentum running up against rich valuations and questions about how wide the gap will be between Trump 2.0 hope and reality. " Fed speak continues ahead of Powell speech

A busy week of data begins Monday with manufacturing activity reports from S&P Global and the Institute for Supply Management, along with October construction spending figures. 

Later in the week, November private payrolls and the October job openings report will provide further insights into the labor market.

Fed speakers, including Governor Christopher Waller and New York Fed President John Williams, are scheduled to address the public this week. Investors are also looking for cues from Fed Chair Jerome Powell on the central bank's monetary policy trajectory.

"A hot US jobs report on Friday risks scrambling near-term Fed expectations," Vital Knowledge analysts commented. Trump threatens ‘100% tariffs’ against BRICS countries 

Trump on Sunday threatened to impose “100% tariffs” on the BRICS bloc of countries, which includes China. 

Trump criticized the bloc’s attempts to form its own currency and shift away from the U.S. dollar, threatening to cut the bloc off from U.S. trade over the move. He called for commitments to the dollar from the bloc.

Trump’s latest comments come after he had last week threatened higher import tariffs against China, Mexico and Canada, rattling global markets with the prospect of more protectionist policies in the U.S.

Investors also feared retaliatory measures from U.S. trading partners, especially China, which could spark a renewed trade war between the world’s biggest economies.  Fed speak continues ahead of December FOMC meeting 

Ahead of a speech by Chair Jerome Powell on Wednesday, remarks from Fed officials continued to be closely watched for fresh clues on monetary policy. 

Atlanta Fed president Raphael Bostic said Monday that he continues to expect that inflation is slowing toward the Fed's 2% target, though added that further incoming data would need to assess for whether it would be appropriate to cut rates at the Fed's Dec. 17-18 meeting. 

Nonfarm payrolls data for November will likely play a key role in cementing to cooling bets on a rate cut later this month.

(Ambar Warrick contributed to this article)

Source: Investing.com