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It is 15,000 and counts for the Nasdaq Composite Index.
The popular index which was launched in 1971 was seen as an indicator for the information technology sector, the future of the US economy, and on Tuesday it took a notable milestone in round numbers that caught the Dow Jones Industrial Average DJIA,
more than half a century more to reach: 15,000.
The Nasdaq Composite COMP,
took 136 days from its last milestone at 14,000 to close at 15,019.80, scoring the longest stretch before eliminating a milestone of one thousand points since the 335 sessions between 8,000 and 9,000 in 2018-19, according to Dow Jones Market Data.
Dow Jones Market Data
Certainly, despite the painstaking rise of the Nasdaq Composite to 15,000, anyone with a passing knowledge of arithmetic will note that such achievements become less impressive as the market progresses. The jump from 8,000 to 9,000 represented a 12.5% increase for the Nasdaq Composite, compared to an increase of 7.1% to 15,000 this time around.
But is it still worth it to pull out a 15,000 hat and a banner and pop the champagne?
Art Hogan, chief market strategist at National Securities Corp. in New York, told MarketWatch on Tuesday that there was is something to say about the psychological impact that getting a round number has on the psyche of the average American watching market movements and on investor sentiment.
“Round numbers are always important because they bring the history of the market to people who don’t watch it every day,” Hogan said, noting that news about the achievements of stock indexes is being announced more enthusiastically in many more. such occasions.
“This may be one of the only stories Aunt Joan is going to read tomorrow,” said the National Securities Corp strategist.
That said, this milestone, also the Nasdaq Composite’s 29th closing record in 2021, also comes with records for the broader market index. The S&P 500 SPX index,
marks its 50th highest all-time close of the year at 4,486.23.
What Tuesday’s negotiation tells us “is a reaffirmation that while there is a lot of concern … about the demise of the stimulus, about the delta variant … companies are increasing their profits and revenues,” noted Hogan.
This is a great opportunity to remind bears and people who do not follow the markets for a living that the market is doing well.
Tech stocks in particular have been fooled in recent weeks and months as concerns about the delta variant and rising Treasury yields caused a steady and uneven rotation of investments that were expected to perform well during the pandemic to stocks that were expected to perform well during the pandemic. could do better as the economy reopens.
So far, financial conditions have been favorable to rising asset values, with the Federal Reserve expected to slow down its reduction in monetary policy accommodations and interest rates expected to stay within a range of 0 % and 0.25% at least until the end of 2022..
The delta variant of the coronavirus, however, has created questions about how the U.S. economy will smoothly return to a semblance of normalcy.
It’s far from an apples-to-apples comparison, but it took 50 years for the Nasdaq Composite to reach 15,000 years while it took the Dow Jones 117 years when it hit 15,000 in 2013.
The top performers of the Nasdaq Composite in its rise to 15,000 include Support.com Inc. SPRT,
up 466%, Prothena Corp. PLC PRTA,
, up around 317%, and Eurodry Ltd. EDRY,
250% advance. BioNTech’s US listed stocks also top the list, up about 214%.
Dow Jones Market Data
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