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US Stock Market: Big Tech Growth Stocks Drive NASDAQ Composite to Record High

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The major U.S. stock indexes finish higher on Tuesday, led by another surge in the tech-heavy NASDAQ Composite, which ended at a record high. The move was fueled by a renewed interest in growth stocks, led by gains in Amazon, Microsoft and other top-tier tech companies.

Meanwhile, in his congressional testimony, Federal Reserve Chair Jerome Powell said nothing to upset investors, while reaffirming the U.S. central bank’s intent to encourage a “broad and inclusive” recovery in the job market and not to raise interest rates too quickly based only on the fear of coming inflation.

Last week, the Fed took a stance on future rate hikes that rattled many investors who viewed the move as more aggressive than expected. Today’s price action combined with Powell’s testimony suggests his softened tone over future rate hikes was designed to instill confidence in the markets after a consensus of investors described last week’s Fed announcements as a shift from dovish to hawkish.

US Cash Market Performance

In the U.S. cash market on Tuesday, the benchmark S&P 500 Index settled at 4246.44, up 21.65 or +0.51%. The blue chip Dow Jones Industrial Average finished at 33945.58, up 69.61 or +0.20% and the tech-heavy NASDAQ Composite closed at 14253.27, up 111.79 or +0.79%.

Powell Calms Investors by Playing Down Likelihood of Quick Rate Hike

“We will not raise interest rates preemptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances,” Powell said in a hearing before a U.S. House of Representatives.

Stocks in Play

Microsoft rose 1.1% and its stock market value briefly breached $2 trillion for the first time, while Apple, Facebook and Amazon also rallied more than 1% each.

Amazon had over $5.6 billion in total online sales in the United States on the first day of its Prime promotional event, according to Adobe Digital Economy Index.

GameStop jumped 10% after the videogame retailer said it raised over $1 billion in its latest share offering, cashing in further on this year’s Reddit-driven surge in its stock price.

Sanderson Farms rallied about 10% to a record high after J.P. Morgan raised its price target on the stock after a source told Reuters that the poultry producer was exploring a sale.

Twitter ended almost 3% higher after it said it will seek applications from users to test new content subscription and ticketing features, as the social platform works to build more ways for users to earn money.

Moderna Inc rose 6.3% after the European Union decided to take up an option under a supply contract with the drugmaker that allows the bloc to order 150 million additional COVID-19 vaccines, Reuters reported.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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