US Tech Rally Propels Nasdaq to New Peak
Estimated reading time: 4 minutes
- Key Takeaways:
- The Nasdaq 100 hit a record high on September 12, 2025, driven by strong performance in the technology sector.
- Tesla’s 7.4% surge and Microsoft’s 1.7% gain were key drivers of the Nasdaq’s increase.
- Softer-than-expected jobs data and subdued inflation fueled expectations of a Federal Reserve rate cut.
- While the Nasdaq 100 soared, the S&P 500 and Dow Jones Industrial Average showed mixed performance.
Contents
- US Tech Rally Propels Nasdaq to New Peak
- Nasdaq 100’s Record High
- Market Divergence
- Sector Performance
- Weekly Performance
- Key Movers
- What to Watch Next
Nasdaq 100’s Record High
At the close of the US equities market on September 12, 2025, (20:00 UTC), the Nasdaq 100 (NDX) reached fresh all-time highs, driven by strength in the technology sector and positive interpretations of recent macroeconomic data. This surge in the Nasdaq 100 contrasted with a mixed performance from other major US indices, with the S&P 500 (SPX) finishing essentially flat and the Dow Jones Industrial Average (DJI) declining. This development is the single most significant movement in global stock indices within the last 12 hours.
Market Divergence
The Nasdaq 100’s 0.4% increase to record territory was primarily fueled by a remarkable 7.4% jump in Tesla’s share price and a 1.7% gain in Microsoft. Microsoft’s rise followed the company’s successful avoidance of a potential significant EU antitrust fine, boosting investor confidence. The strength in these two mega-cap technology stocks, coupled with broader sector strength, propelled the NDX to its new high. In contrast to the Nasdaq 100’s robust performance, the S&P 500 edged down by a mere 0.05%, closing at 6584. The Dow Jones Industrial Average experienced a more pronounced decline, falling by 273 points. This divergence highlights the sector-specific nature of the market’s movement, with technology clearly outperforming other sectors.
Sector Performance
Sector breadth also reflected this trend, with the technology and consumer discretionary sectors leading the advances. Conversely, materials and healthcare sectors lagged behind. While the VIX volatility index was not specifically reported in relation to this index movement, a strong rally led by the technology sector would typically be associated with a decrease in implied volatility, reflecting increased investor confidence.
Weekly Performance
For the week ending September 12th, 2025, the major US indices showed positive performance. The S&P 500 gained 1.6%, the Nasdaq 100 rose by 2%, and the Dow Jones Industrial Average increased by 1.1%. These gains, combined with the Nasdaq 100’s record close, suggest a continued positive sentiment for at least some segments of the market, though the divergence between indices underscores underlying uncertainty.
Key Movers
The key movers in this market dynamic were clearly Tesla and Microsoft, their significant gains directly influencing the overall performance of the Nasdaq 100. Their performances highlight the significant impact of individual mega-cap stocks on broader market indices.
Trading Economics – US Stock Market Index closing summary, September 12, 2025
What to Watch Next
- The Federal Reserve’s interest rate decision on September 17, 2025, and the accompanying statement. The market’s reaction to this announcement will be crucial.
- Further earnings reports from major technology companies. Continued strong performance from key players could support the positive momentum.
- Any significant geopolitical developments that might impact investor sentiment and market direction.
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