U.S. Nasdaq surpasses 20,000 for the first time in history

[Anchor]

The U.S. Nasdaq index has surged past the 20,000 mark for the first time.

This is analyzed to be influenced by expectations that the Trump administration's second term will lead to regulatory easing along with interest rate cuts.

In particular, Tesla's stock price has reached an all-time high.

Kim Kyung-soo reports from Washington.

[Report]

As of early morning in Korea, the U.S. Nasdaq index closed at 20,034, up 1.77% from the previous day.

Starting at 100 in 1971, the U.S. Nasdaq index surpassed 10,000 in 2020, and in less than five years, it has now crossed 20,000.

Alphabet, the parent company of Google, Amazon, and Meta, the parent company of Facebook, led the market's rise, and particularly, Tesla has set another record high.

Thanks to this, the wealth of Elon Musk, the CEO of Tesla and a close associate of President Trump, has exceeded $400 billion.

The strength of large tech stocks has been influenced by expectations that the U.S. benchmark interest rate will be lowered further.

[Michael Clarfeld/Portfolio Manager at ClearBridge Investments: "I think the markets are saying today that obviously this sets the stage for the Fed to cut rates next week. And I think the markets are cheering that."]

While the U.S. stock market continues its solo rally, there are also warnings that it has reached a historic high.

This indicates that there is a bubble.

[Ben McMillan/Chief Investment Officer at IDX Advisors: "Particularly if you look at things like the Nasdaq, you're starting to get to, you know, definitely frothy ranges. But right now, However, it's definitely still risk-on."]

Expectations that the Trump administration will ease regulations are also energizing the U.S. stock market.

President Trump is scheduled to ring the opening bell at the New York Stock Exchange today.

This is Kim Kyung-soo from KBS News in Washington.