By
Bhushan Akolkar
May 2nd, 2024
The Nasdaq Composite surged by an additional 3.85% on Wednesday to 11,590.78. Namely, the tech stocks included in the index are said to be responsible for this growth spike.
The tech stocks in the United States are on the run following the general elections and the roll-out of the presidential election results. The entire stock market has been resilient in this election season as the growth has been seen for about three consecutive days.
The Nasdaq Composite (INDEXNASDAQ: .IXIC) is a stock market index that includes almost all stocks listed on the Nasdaq stock market and comprises of mostly tech stocks. Together with the Dow Jones Industrial Average (INDEXDJX: .DJI) and S&P 500 Index (INDEXSP: .INX), are three of the most-followed stock market indices in the United States and the trio has seen remarkable surges against expectations of downtrend owing to the election uncertainty.
The Nasdaq Composite surged by an additional 3.85% on Wednesday to 11,590.78. The tech stocks listed on the Nasdaq Composite are arguably responsible for this growth spike as Apple Inc (NASDAQ: AAPL) closed Wednesday’s trading session with a 4.08% growth to hit $114.95. The pre-market trading surge of Apple stocks by about 0.90% has also given an inclination that the Cupertino based firm may be on its way to having another profitable day.
Amazon.com Inc (NASDAQ: AMZN) also had a great showing on Wednesday to complement the bullish runs of the past days. The stock closed 6.32 percent, adding a massive $192.75 to close at $3,241.16. Alphabet Inc (NASDAQ: GOOGL) also rode the tide to advance 6.09% while Facebook Inc (NASDAQ: FB) seems to be the biggest gainer of the top 4 tech firms with its stocks rising by 8.32% to close at $287.38.
While we can attribute the positive growth to the big cap firms as highlighted, smaller tech firms also saw impressive runs on Wednesday. MicroStrategy Incorporated (NASDAQ: MSTR) saw a 0.34% growth and increased its market capitalization to $1.6 billion.
Why Tech Stocks Are Rallying
It is particularly difficult to adduce the rally of these tech stocks to any particular cause but according to TechCrunch, this growth may be due in part to investors returning to their trading behavior in the summer when they bet heavily on tech stocks in hopes of getting a better than expected returns in case of economic collapse such as that seen during the COVID-19 pandemic.
The stocks of Apple, Amazon, Google, and Facebook, in particular, look quite attractive as the world looks to recover from the pandemic mishap with digital products and offerings that characterize these firms.
The outcome of the presidential election may also serve as the catalyst in pumping revenues into tech stocks. Should Joe Biden emerge as the new President and Commander in Chief, the trade tensions with China which affects key U.S. companies including Qualcomm Inc (NASDAQ: QCOM) and Intel Corporation (NASDAQ: INTC) may finally get relaxed which will translate to better performance from these firms in the long term.