Nasdaq Composite Builds on Recent Gains as MicroStrategy Joins Nasdaq-100

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Published: December 16, 2024 9:21 am

Last Updated: December 16, 2024 1:34 pm

Live Updates

Nasdaq Now Up 1.2%

1:30 pm

As of 1:30 p.m. ET, the Nasdaq-100 is up 1.25%. That’s significantly outpacing the S&P 500’s .53% gain. The Dow Jones is down very slightly.

What’s driving technology stocks today?

Donald Trump announced a $100 billion investment in U.S. tech from Japanese mogul Masayoshi San.
Broadcom continues to rally, up 10% today after a 24% gain on Friday. Broadcom’s gains may be drawing capital out of NVIDIA, which is down 2% today.
Alphabet continues to rally, up 4.63% today. Tesla is another strong performer, up 4.88%

Broadcom The Top S&P 500 Stock Again

10:07 am

Broadcom has added to its premarket gains and is now trading for about $246 per share, up 9.4% on the day. The company is followed by Micron Technology (Nasdaq: MU), which is up 7.45%.

On the other end of performance, the three bottom-performing stocks were all involved in the Nasdaq-100 rebalancing. Palantir Technologies (Nasdaq: PLTR) is down 4.8% while Axon Enterprises (Nasdaq: AXON) is down 4%. While it might seem odd for these stocks to drop after the news was announced, remember that both have been on very large winning streaks and their inclusion didn’t come as much of a surprise.

Super Micro Computer (Nasdaq: SMCI) is down 3.8% after it was removed from the Nasdaq. MicroStrategy, which was added to the Nasdaq-100 is up 4%, but Bitcoin also continues to perform well and is trading at $105,000, which may be impacting MicroStrategy’s gains today.

Small Business Surveys Show Massive Improvement

9:16 am

The stock market continues rocketing higher, but how does confidence look in other pats of the economy? One indicator to watch is the NFIB small business optimism survey, which increased from 93.7 in October to 101.7 in November.

That’s the highest monthly rise on record. While its nice to see confidence bouncing back, this does raise the probability inflation could be on the rise. The biggest market story in 2025 will be whether growth can rebound without inflation once again rising beyond levels the Federal Reserve finds acceptable.

Tech stocks look poised to build on recent gains in premarket trading on Monday. Nasdaq Futures are up in the most in Futures trading as of 9:00 a.m. ET:

Nasdaq Futures: Up 120.75 (+.55%)
S&P 500 Futures: Up 21.25 (+.35%)
Dow Futures: Up 87.00 (+.20%)

Big storylines today include whether AI stocks like Broadcom (Nasdaq: AVGO) can build on Friday’s gains and the Nasdaq-100 rebalancing to include stocks like MicroStrategy (Nasdaq: MSTR), Palantir (Nasdaq: PLTR), and Axon (Nasdaq: AXON).

Will Broadcom Soar Again?

The biggest market news on Friday was Broadcom’s shares soaring 24% following earnings. Broadcom’s gains were the result of a very optimistic earnings call where the company’s CEO spoke of a massive revenue opportunity that could include up to $60 to $90 billion from just three top customers by 2027.

The call was bullish enough that AI infrastructure stocks across the board saw strong gains on Friday. Other stocks in the space that saw big gains included Marvell (Nasdaq: MRVL), Celestica (NYSE: CLS), and Ciena (Nasdaq: CIEN).

In premarket trading, Broadcom is up another 3.5% while Marvell is up 2%. Watch these two stocks to see if money keeps flowing into AI infrastructure stocks this week.

Nasdaq-100 Rebalances

The Nasdaq-100 announced a ‘reconstitution’ Friday night. The index will add Palantir (Nasdaq: PLTR), MicroStrategy (Nasdaq: MSTR), and Axon Enterprises (Nasdaq: AXON). As these stocks enter the Nasdaq-100, Super Micro Computer (Nasdaq: SMCI), Moderna (Nasdaq: MRNA), and Illumina (Nasdaq: ILMN) are being removed.

We detailed why stocks being added to the Nasdaq-100 can be very significant last week. With more than $550 billion in funds tracking the Nasdaq-100, there will be about $3.7 billion of inflow in Palantir, $2.1 billion in MicroStrategy, and $1.26 billion in Axon. On the other hand, there will be selling pressure on the stocks being removed.

MicroStrategy is currently up 3.9% in premarket, Palantir is down .7%, and Axon up 1.1%. Among the stocks being removed, Moderna is flat, Illumina is down slightly, and Super Micro Computer is down 12%.

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