Home Breaking News The Nasdaq just set a major stock-market milestone

The Nasdaq just set a major stock-market milestone

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The Nasdaq Composite Index on Tuesday hit a major milestone: surpassing Nasdaq 6,000, amid a broad-market rally.

The Nasdaq Composite












COMP, +0.70%










touched an intraday record of 6,036.02, ultimately, closing up 0.7% at 6,026, marking a 4,308-trading-session stretch since it moved from one 1,000-point milestone to the next, according to Dow Jones data. That represents the index’s longest gap between milestones since 1995, when the tech-laden benchmark took 24 years, or 6,171 trading sessions, to reach 1,000. Overall, it has taken the Nasdaq 46 years since its inception in 1971 to hit 6,000.

“Tech is so strong this year as the cloud [storage technology] is driving more and more of the earnings within the Nasdaq index and it’s a growth area that’s expected to continue,” said Chris Zaccarelli, chief investment officer of Cornerstone Financial Partners (see table below).

Read: MarketWatch’s snapshot of the market

Nasdaq Milestone 1st close at a milestone Nasdaq closes No. of trading days to next milestone
1000 July 7, 1995 1005.98 6,171
2000 July 17,1998 2000.95 758
3000 Nov. 3, 1999 3018.51 329
4000 Dec. 29, 1999 4041.46 38
5000 March 9, 2000 5046.86 49
6000 April 25, 2017 6,025.49 4,308
Source: Dow Jones data

Indeed, the last time the Nasdaq was somersaulting higher was in the late 1990s and early 2000s, during the notorious dot-com bubble. That period of buzzy tech companies with dubious business models, exemplified by Pets.com, didn’t end well for investors. In fact, Wall Street took 15 years to recover, with the index not returning to the 5,000 level again until March 2015.

This time around, stocks are running higher on the back of easing geopolitical risks, better-than-expected corporate earnings and the so-called Trump rally, fueled by hope of tax cuts, infrastructure spending and deregulation from President Donald Trump.

Markets also are anticipating news on corporate tax reform after Trump said a plan to cut corporate taxes to 15% would be revealed on Wednesday.

Even though, enthusiasm over equities had dampened somewhat since the November election, the Nasdaq has been relatively steady among its equity-benchmark peers. Since the U.S. presidential election, the Nasdaq has gained about 16%, compared with a 14.6% climb for the Dow Jones Industrial Average












DJIA, +1.12%










and an 11.6% advance for the S&P 500 index












SPX, +0.61%










over the same period.

On Monday, the Nasdaq closed at a fresh record as the global equity market rallied on centrist Emmanuel Macron’s first-round victory in the French presidential election, averting fears of a head-to-head battle between euroskeptic candidates, far-right politician Marine Le Pen and far-left Jean-Luc Melenchon. Le Pen and Macron are set to face off in a May 7 runoff, with Macron holding a sizable lead in early polling.

A jump in shares of Caterpillar Inc.












CAT, +7.86%










and McDonald’s Corp.












MCD, +5.57%










were helping to power the Dow.

The Nasdaq-100












NDX, +0.73%










also closed at a record high of 5,548.19, as did the Dow Jones Technology Index












DJUSTC, +0.65%










which ended at an all-time high of 1,414.18.

Check out: 4 things investors need to know about France’s presidential runoff

How significant is Nasdaq 6,000? Maybe not at all, but the Street adores symbolic levels.



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