Nasdaq breaks the 5000 mark for first time since 2000
The US tech-rich Nasdaq Composite broke past the 5,000 mark for the first time since 2000 despite Monday’s backdrop of data which showed the US suffered from a slowdown in manufacturing activity and a drop in US consumer spending.
ALPHABET-A
$154.09
13:09 19/04/24
Apple Inc.
$165.00
13:04 19/04/24
Hewlett-Packard Co.
$27.81
10:59 19/04/24
META PLATFORMS
$481.07
13:05 19/04/24
Nasdaq 100
17,037.65
12:15 19/04/24
The Nasdaq Composite rose early in the US session by as much as 0.7% to 5,000.33 on Wall Street before retreating a little lower to trade 0.% higher at 4.996.30. Meanwhile, the S&P 500 rose 0.4% to 2,112.21 while the Dow Jones Industrial Average gained 0.6% to 18,242.51.
Lagging behind rivals like the S&P500 and the DJIA - both of which have been recording fresh highs for the past 18 months - the Nasdaq’s slower ascent to 15-year highs comes in tandem with other global indices reaching 15-year highs like the UK’s FTSE 100 and Japan’s Nikkei 225.
Indeed, Monday’s overnight jump to 15-year highs by the tech-heavy Nikkei 255 in Tokyo provided the support to US tech-shares as investors piled into well-known tech giants like Apple, Google and Facebook on increased confidence in the global economy.
The risk-on tone for equity markets follows recent moves by global central banks to continue aggressively pumping stimulus. Overnight, China’s central bank pulled the trigger by cutting rates. Later this week, the European Central Bank will launch its €60bn per month bond-buying programme.
At the same time, deal activity offered further support, particularly to technology shares as Hewlett-Packard signed a deal to buy Wi-Fi network gear maker Aruba Networks for $24.67 a share offer. The deal is reportedly worth $2.7bn and is the first major deal by HP since the company announced plans to split itself into two last year.
That positive tone in the markets outweighed the weaker than expected growth in US manufacturing activity which rose at its slowest pace in a year in February, according to the latest survey from the Institute for Supply Management.
The ISM's index - in which any reading over 50 signals expansion - fell to 52.9 last month from 53.5 in January, below economist expectations for a reading of 53. Capital Economics attributes the decline to “the dollar's recent appreciation and the weakness of overseas demand.”
Earlier, data revealed that personal spending in the US dropped 0.2% in January, better than the 0.3% decline registered in December but lower than the 0.1% dip expected by economists.
The decline came as personal income rose 0.3% in January, matching December but a slightly lower result than the 0.4% increase estimated by economists.