Nasdaq and S&P 500 Surge to New Records Driven by Tech Sector as Bitcoin Reaches $75K
The technology sector propelled the Nasdaq to reach 24,016 and the S&P 500 to hit 7,022, while Bitcoin surged approximately 10% across a two-week period.
On Wednesday, US equities and technology stocks experienced significant gains as market participants responded optimistically to prospects of a de-escalation in the US-Iran conflict, with Bitcoin simultaneously touching the $75,000 mark during a period of widespread positive momentum throughout the cryptocurrency market.
Data from Yahoo Finance shows that the Nasdaq Composite, which has a heavy concentration of technology companies, reached a fresh record peak of 24,016.02 during Wednesday's trading session, finishing the day up 1.59%, while the S&P 500 achieved its own all-time high of 7,022.95 following a modest increase of 0.8%.
Driving the indexes' strong showing during the session was an overall 2.08% advance in technology stocks. At the same time, Bitcoin reached $75,229 on Wednesday, posting a 1.07% increase during the preceding 24-hour period and extending recent upward movement that has resulted in BTC climbing nearly 10% throughout the past two weeks.
These advances in tech and crypto markets arrive alongside indications from the White House suggesting that the US-Iran conflict could be nearing its conclusion. During a Wednesday interview with Fox Business, President Donald Trump stated that he believes the war is "very close to being over."
Nevertheless, Trump pointed out that this outcome still hinges on whether the two nations can successfully negotiate an agreement.
If I pulled up stakes right now, it would take them 20 years to rebuild that country. And we're not finished. We'll see what happens. I think they want to make a deal very badly.
Regarding the recent advances in the S&P 500, Tom Lee, who serves as Fundstrat's chief investment officer, stated there's additional potential for expansion in the coming period, suggesting that certain investors continue to remain on the sidelines while they monitor how the conflict unfolds.
During an appearance on CNBC's "Closing Bell" program on Wednesday, Lee contended that the US stock market and economy have demonstrated resilient performance even with the Middle East conflict ongoing, and further noted in an X platform post that "stocks bottom on bad news," not good news.
That said, Lee indicated his expectation that the rally's next phase will be spearheaded by cryptocurrency assets including Bitcoin and Ether, together with the Magnificent Seven technology stocks and the wider software industry sector.