US Stocks Gained with the Nasdaq Composite closing at an all time high to exceed its record close set in 2000 at the height of the Dot-Com technology bubble.
The technology heavy index, propelled by gains in social media stocks, hopes of a robust US economy and speculation that the Federal Reserve’s monetary tightening policy will not be until after the summer, surged 20.89 points or 0.4% to close at 5056.6 points.
According to data by Reuters, exceeds its previous record close of 5048.62 set on March 10 2000 and marks a slow but spectacular turnaround 297% turnaround from its march 2001low.
Unlike the Dow Jones Industrial Average and the S&P 500 that have posted dozens of new highs after the global economic meltdown, the Nasdaq has only come close to topping its highest mark but has always fallen short.
Analysts attribute the relatively slow ascent of the index to “wild inflation” of its prices in 2000 as a result of the excitement over the then-new Internet’s prospects.
Market analysts expect the index to continue its growth being more than 6.8% high this year-higher than the other benchmark indexes.
“Now that it’s making a new high, I don’t think it’s just going to stop. It has the potential to go up, absent some external event that I can’t predict. I think the companies look as though they ought to power through this environment,” Walter Price, senior portfolio manager and managing director of the AllianzGI Global Technology fund in San Francisco, told the Wall Street Journal.
“In 2000 a lot of the high-growth companies were selling at 200 or 300 times next year’s earnings. This is nothing like that. This is a whole different world versus 2000.”
Moderate gains across the major indexes saw the benchmark Standard and Poor’s 500 Index set a new intraday high but fall shy of a record close.
The S&P 500 advanced 4.97 points 0r 0.24% to 2,112.3 points while the Dew Jones Industrial average gained 20.42 points or 18,058.69.
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