Stocks Open Lower as Nasdaq Expected to Hit 5000 Within Months

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Stocks Open Lower as Nasdaq Expected to Hit 5000 Within Months

On Friday, stocks opened lower, extending the week’s losses as the S&P and the Dow head for the worst performance in six weeks.

According to USA Today, the Dow Jones Industrial Average declined 0.3% and the S&P 500 Index dropped 0.3%. The Nasdaq composite Index dropped 0.3%.

On Thursday, the stocks finished lower as jobless claims that were weaker than projected, geopolitical threats and interest rate hikes put pressure on investor sentiment. The S&P 500 rose 0.1% or 1.76 points to 1997.45, the Dow dropped 0.1% or 9.71 points to 17, 049.00 and the Nasdaq rose 0.1% or 5.28 points to 4591.81.

The Nasdaq is yet to surpass its record high. The absolute peak it had in March 2000 at 5,049 saw it increase by more than 1,300%. After that the Nasdaq tumbled and lost around 78%.

Now, trading over 4,500, it is close to its highs, which are only approximately 10% away. This might represent an extraordinary recovery in the stock market.

This might happen within months if the stocks do not correct drastically and keep rallying.

Market Watch quotes Phase & Cycles founder and technical analyst, Ron Meisels to have said, “The secular bull market both in the S&P 500 and the Nasdaq started in 2009. We can very well spill into 2015 and still be in a secular bull by next year. If that is the case, the Nasdaq will go over 5,000.”

The Nasdaq represents the values of the stocks listed on Nasdaq Stock Market. As is the case with the S&P and the Dow, it is an index weighted on market capitalization, so the weight of a particular stock in the index is usually proportional to market value.

Currently, there are 2,500 stocks in the index, which is about half the 4,715 stocks it had in 1999. Mergers and acquisitions saw many stocks leave the index over the years.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com