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The Nasdaq index managed to break the 10,000 barrier for the first time ever. This historic record became possible thanks to the increase in the shares of big tech companies.
In the wake of the reopening of the economy after months of lockdown, Nasdaq Composite (INDEXNASDAQ: .IXIC) stands as the first trading index to record a year to date loss overturn. The Composite trading index managed to break the 10,000 barrier for the first time ever as Amazon.com Inc (NASDAQ: AMZN) and Apple Inc (NASDAQ: AAPL) shares jump.
The market trend this week shows promising economic recovery indices as most company’s stocks are rebounding and gaining traction after weeks of revenue downturn spiked by the coronavirus. The Nasdaq record is fueled by the spike in stock value of big tech companies like Apple which rose 3.16% to $343.99 and Amazon which gained 3.04% to trade at $2,600.86.
Nasdaq Index Performance
The Nasdaq Stock Market is a New York-based American stock exchange. The company has a listing of major U.S companies including Amazon, Apple, Microsoft Corporation (NASDAQ: MSFT), and other top business brands. Founded in 1971, Nasdaq trails the NYSE in performance but has a record market capitalization of $10 trillion.
The exchange has seen better valuation as traders are taking advantage of tech stocks and stocks whose demands are on the rise due to the reopening of the economy. The tech-heavy Nasdaq rose 0.29% to finish the day at a record close of 9,953.75, below its all-time intraday high north of 10,000 it hit earlier in the day. Other important stocks that contributed to this record-high include Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) which saw a 0.28% increase, Facebook Inc (NASDAQ: FB) which increased by 3.14%, Netflix Inc (NASDAQ: NFLX) with a 3.74% increase.
The performance also took a new twist as reported by a business insider which saw the S&P 500 index (INDEXSP: .INX) and the Dow Jones Industrial Average (INDEXDJX: .DJI) both slump on Tuesday, falling 1.2% and 1.5%, respectively, at intraday lows. On Monday, the S&P 500 also erased its 2020 losses.
While the Nasdaq Composite index managed to reach 10,000 intraday, it recorded an 11-year year to date boost. This indicates a new reality for the exchange. Drawing from the probable effects of the 2-day meeting by the Federal Reserve starting on Tuesday, investors will be poised to make more bullish moves on promising stocks with a current track record of increased performance. In all, the economic recovery measures and the effects on the market appears promising, a factor that aids the upward trajectory of stocks.