Nasdaq, S&P seek firm direction after hitting record highs; bitcoin climbs past $101K

Wall Street’s major market averages were mostly muted Thursday, a day after each closed at fresh record highs, while investors pushed the price of bitcoin (BTC-USD) beyond its newly crossed $100K milestone.

Technology stocks (XLK) as a whole were lower after that group paced the S&P 500’s (SP500) gain a day earlier, contributing to the benchmark’s 56th record closing high in 2024. UBS said even as the earnings gap narrows between Big Tech stocks and the rest of the market, it sees mega-cap techs playing a leading role in driving markets higher in 2025.

On Thursday, the S&P 500 (SP500) and the tech-focused Nasdaq Composite (COMP:IND) wavered and were each down less than -0.1%. The Dow (DJI) -0.2%, after closing above 45,000 for the first time on Wednesday.

Tesla (TSLA) outperformed its fellow Magnificent 7 stocks on Thursday, rising +3.5% after Bank of America Securities raised its price target on the EV maker to $400 from $350.

Meanwhile, Tesla (TSLA) landed in Seeking Alpha’s list of 20 companies that have the most bitcoin (BTC-USD) holdings, with the cryptocurrency in focus after crossing above $100K late Wednesday. Bitcoin (BTC-USD) on Thursday rose +7% to trade above $101,570.

“Bitcoin flows have been dominated by institutional investors in 2024. We expect this to continue in 2025, helping BTC reach our end-2025 target level of around $200,000,” Geoff Kendrick, head of crypto research at Standard Chartered, said Thursday.

MicroStrategy (MSTR) is well-known as the corporate holder of the most bitcoins, at 252,220. Its shares slipped 0.2% on Thursday, but the stock has soared +540% in 2024. Shares of bitcoin miner MARA (MARA) were down 1%.

In economic news, U.S. initial jobless claims increased more than expected in the past week. Meanwhile, outplacement firm Challenger, Gray & Christmas said announced job cuts rose 3.8% in November and climbed 27% Y/Y. The reports about the labor market came before Friday’s arrival of U.S. November nonfarm payrolls data.

The 10-year Treasury yield (US10Y) rose 2 basis points to 4.20%. The 2-year yield (US2Y) rose 4 basis points to 4.17%.

“It’s been a very eventful 24 hours for markets, with the French government losing a no-confidence vote for the first time since 1962, alongside ongoing political uncertainty in South Korea and some hawkish-leaning comments from Powell,” Deutsche Bank’s Henry Allen said.

“But despite everything that’s happening, risk assets have been broadly unphased by the various developments,” Allen added.