The Nasdaq Composite Index surpassed 20,000 for the first time, with Alphabet and Tesla joining Amazon and Meta in achieving new records.

• On Wednesday, Tesla surpassed its 2021 high, while Alphabet set a new record for the first time since July.
• The Nasdaq surpassed 20,000 as four of tech's largest companies reached all-time highs.
• Only Nvidia and Microsoft among the largest tech companies have not surpassed their previous records, while Apple fell below its record set on Tuesday.

On Wednesday, the Nasdaq reached new all-time highs, surpassing 20,000 for the first time, as and climbed to fresh records.

The market cap of tech's seven trillion-dollar companies increased by approximately $416 billion on a daily basis.

The 11% rally of Alphabet's stock over two days was fueled by the company's launch of its newest quantum computing chip, which it unveiled on Monday and characterized as a "breakthrough" and "a crucial milestone in our quest to construct a functional quantum computer with practical applications in drug discovery, battery design, and other domains."

On Wednesday, the stock market closed at $195.40, surpassing its previous high of $191.18, which it achieved on July 10.

Tesla's shares jumped almost 6% on Wednesday, surpassing their previous closing high, after Wall Street predicted that Elon Musk's close ties with the incoming president would bring benefits to the company.

Despite Apple slipping 0.5% on Wednesday, Amazon, Meta, and chipmaker have all been regularly reaching new highs. However, Amazon is about 4% below its high reached in July, and chipmaker is 6% off its record from last month.

The Nasdaq has experienced a 33% increase in value for the year due to the significant influence of tech's largest corporations. On Wednesday, the index increased by 1.8%, reaching a new all-time high of 20,034.89.

Since Trump's victory on Nov. 4, the market has rallied, in part, due to anticipation that the new administration will lessen regulatory pressure on the tech sector and enable more mergers and acquisitions.

On Tuesday, Trump appointed Andrew Ferguson as the new chair of the Federal Trade Commission, replacing Lina Khan, who is renowned for thwarting the tech giants' acquisition attempts. Ferguson, currently one of the FTC's commissioners, will be the most "America First and pro-innovation" FTC chair in the country's history, Trump declared in a Truth Social post.

According to Tom Lee, managing partner at Fundstrat Global Advisors, investors anticipate more gains in tech due to the expectation of a Federal Reserve rate cut this month. The consumer price index in November showed a 12-month inflation rate of 2.7%, which further supports the market outlook for a cut.

"According to Lee, when interest rates decline, megacaps are highly sensitive to this change, and today's events have increased the likelihood of a December rate cut. This is a positive outlook for the tech industry."

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