Nasdaq Soars to Record High as Tech Titans Lead the Charge–But Is the Rally Sustainable?

The Nasdaq Composite (^IXIC) flexed its muscles Monday, climbing 1.2% to a fresh record high, powered by tech giants Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG), Tesla (NASDAQ:TSLA), and Broadcom (NASDAQ:AVGO). Broadcom stole the show, surging 10% after projecting a 65% jump in AI product sales for Q1. Meanwhile, Bitcoin (BTC-USD) hit an eye-popping $107,000, riding a wave of optimism tied to President-elect Trump’s crypto-friendly agenda. Not everything sparkled, thoughNvidia tumbled further into correction territory, shedding over 10% since November. Elsewhere, the Dow (DIA) eked out a slight loss, extending its losing streak, while the S&P 500 (SPY) inched up 0.4%, signaling cautious optimism ahead of the Federal Reserve’s final policy meeting of the year.

The big question on Wall Street? What’s next for the Fed. A quarter-point rate cut is pretty much a lock, with traders betting 97% odds. But what really has investors’ attention is Fed Chair Jerome Powell’s forward guidance. Sticky inflation, lingering political uncertainty, and mounting global pressures have thrown a wrench into the central bank’s plans to cut rates steadily through 2025. Powell’s remarks on Wednesday could reshape expectations for next year, especially with inflation creeping higher despite earlier rate cuts. The stakes are high, as markets look for signs of whether the Fed will stick to its easing roadmap or hit pause if inflation refuses to play nice.

Adding to the mix, China’s economic slowdown has re-entered the chat, with retail sales missing the mark and property prices continuing their downward slide. Oil prices slipped, reflecting broader jitters about global demand. Despite these challenges, the Nasdaq’s record run and Bitcoin’s surge are clear signals that investors are still leaning into the growth narrative. With key inflation data and retail sales numbers on deck later this week, it’s shaping up to be a critical moment for markets to figure out if this rally has legsor if it’s time to pump the brakes.

This article first appeared on GuruFocus.