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The Nasdaq Composite extended its winning streak on Friday, closing at 22,149, its fifth consecutive record high. The tech-heavy index continues to outperform broader markets, fueled by investor enthusiasm for artificial intelligence, cloud infrastructure, and semiconductor innovation.
Tesla and Oracle Steal the Spotlight
Tesla surged to a seven-month high, gaining nearly 6% as analysts upgraded its outlook based on strong delivery numbers and expanding margins. Oracle also made headlines with a 36% single-day jump, its largest since 1992, following a blockbuster earnings report and news of a multi-billion-dollar cloud deal with OpenAI.
These gains reflect a broader trend: investors are doubling down on companies positioned to lead the next wave of digital transformation.
AI Boom Reshapes Market Dynamics
Artificial intelligence continues to be the market’s primary growth engine. Oracle’s deal with OpenAI—valued at $300 billion over five years—is part of a larger initiative to build global AI infrastructure. This announcement sent shockwaves through the tech sector, lifting related stocks and reinforcing the belief that AI is not just a trend but a long-term economic force.
Semiconductor firms like Nvidia, AMD, and Micron also posted strong gains, with Micron up 7.55%, its best performance in months. The PHLX Semiconductor Index reached a new peak, underscoring the sector’s central role in powering AI applications.
Economic Data Supports Rate Cut Bets
While inflation remains sticky, recent labor market data suggests a slowdown. Weekly jobless claims rose to 263,000, the highest in nearly four years, and consumer sentiment dipped. These signals have strengthened expectations that the Federal Reserve will begin cutting interest rates next week.
Traders are now pricing in a 90% chance of a 25-basis-point cut, with further easing expected before year-end. Lower rates could benefit tech firms by reducing borrowing costs and boosting investment in innovation.
Sector Highlights
Technology: Leading gains, especially in AI, cloud, and semiconductors
Consumer Discretionary: Mixed, with strength in travel and e-commerce
Energy: Flat, as oil prices declined
Financials: Stable, awaiting Fed decision
The Nasdaq’s record-breaking run reflects a potent mix of technological optimism and monetary policy anticipation. While valuations are elevated, the market’s focus remains on transformative innovation and supportive economic signals. As the Federal Reserve prepares to meet, investors are watching closely for confirmation that the rally has room to run.