Stock traders, pension funds, global investors, and asset managers have had a lot to laugh about recently, after the Nasdaq Composite Index (which comprises Amazon, Apple, Facebook, and Google) broke its trading record numbers.
The Nasdaq Composite surged 1 percent to 11,129.73,
The Dow Jones Industrial Average dropped by 0.31% to end at 27,844.91 points, while the S&P 500 surged by 0.27 % to 3,381.99.
The Nasdaq closed its most recent trading session at a record. Also, the S&P 500 closed the day four points from its best once again, as most global technology companies had a good showing. The Dow struggled to keep up.
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Why the NASDAQ is soaring higher
Leading global tech stocks like Amazon, Apple, Facebook, and Microsoft have been performing better than most businesses during the COVID-19 pandemic. This is because individuals and businesses have moved to the cloud and remote services, leading to gains for the companies providing such services. These gains have also helped push up these tech firms’ market capitalization which, in turn, helped them to withstand the huge sell-offs recorded in months.
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However, in spite of the technology-powered stock index setting new records, Stephen Innes, the Chief Global Market Strategist at AxiCorp, spoke about the growing concerns among global investors. He said:
“Muggy, sluggish, and unsettled conditions are typically mirrored in markets at this time of year. Political malevolence and the lingering pandemic have only added to stresses in 2020.
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“Still, it was another day where everything rallied except the US dollar. The ideal investor’s situation where all assets are pretty much roped to the hip of US policy stimulus and the expectations of more to come.
“Yes, big tech is doing its part, but when the bearish argument is centering on the failure to make new record highs on the S&P 500, it would suggest sentiment is in a pretty good place. And with the high-frequency indicators that investors track for the US do not indicate that the recovery is falling off the cliff either.”