Nasdaq Crosses 6000 On Stock-Market Rally
Trade12 | Apr 26, 2017 12:38PM ET
On Tuesday, the Nasdaq Composite Index crossed 6,000 line after a series of positive earnings report sending a broad-market rally. The Nasdaq composite which recorded an intraday high of 6,036.02 closing 0.7% or 41.7 points at 6,025.5 was also supported by Trump’s announcement later this week regarding a tax reform and the relief from the French elections.
The tech-heavy Nasdaq index has also outperformed the blue-chip Dow Jones industrial average by 6.4% and the Standard & Poor’s 500 composite index by 6.7%.
This is the first time the Nasdaq recorded a new milestone since the last 17 years when the index crossed 5,000 on the rise of the technology market. This time, tech companies also led most of the rally for the Nasdaq with companies such as Apple Inc (NASDAQ:AAPL)., Facebook Inc (NASDAQ:FB)., Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) Inc who all stands at a firm ground.
The tech sector, which has largely skyrocketed due to the rising popularity of smartphones, online advertising, e-commerce, social networking, and cloud computing, is set to further rise throughout the year. The Nasdaq has rallied by more than 10% this year so far.
Trump’s presidency has also led tech giants such as Alphabet, Oracle (NYSE:ORCL), Apple, Microsoft, and Cisco to rally due to the possibility of the companies benefitting from tax cuts.
Companies listed on the Nasdaq but outside of the tech sector posted strong earnings such as DD, MMM and MCD.
Following the positive earnings from tech stocks, the financial, industrial, and manufacturing sector also led the market to rally to new highs since Donald Trump’s election as president. This has also sparked enthusiasm for the markets due to Trump’s plan to give tax cuts for American companies who will operate solely in the country.
Stocks also rallied months after the election due to the positive effect of his pro-business proposals that includes lower tax rates, lesser regulations, and his plan to increase infrastructure spending. According to analysts, a clearer tax and regulatory reform would send American stocks to new highs and will boost the economy further.
Aside from the bullish effect of Trump’s plans the stock market, as observed by the markets, has been able to withstand negative effects from recent geopolitical matters in Asia but has rallied on the results of the French election’s first round which resulted into a poll in favor of centrist candidate Emmanuel Macron.
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