'Untact' IT Surge... Nasdaq Hits 10,000 for the First Time Ever

MS, Apple, Amazon Lead Consecutive Gains Driving Index Higher
US Economic Indicators Mixed... Fed Outlook in Focus
White House Economic Advisor Hints at 4th Stimulus Package

[Asia Economy New York=Correspondent Baek Jong-min] U.S. IT companies, represented by 'untact (contactless)' services, are rapidly advancing. Apple, Amazon, and Facebook stocks have reached all-time highs due to strong earnings. The Nasdaq index, which is technology stock-centered, surpassed the 'dream number' of 10,000 during trading. Although the U.S. economy has suffered severe damage from the COVID-19 pandemic, there is growing consensus that core IT companies will instead enjoy long-term benefits.

On the 9th (local time), the Nasdaq index recorded 10,025.50 during trading on the New York Stock Exchange. While the Dow Jones Industrial Average and the S&P 500 index declined that day, showing signs of correction, the Nasdaq continued its unstoppable rise alone. The Nasdaq closed at 9,953.75, up 0.29% (29.01 points), marking its highest level for the second consecutive day. The Wall Street Journal (WSJ) evaluated that "the Nasdaq has set a milestone in the history of the U.S. stock market."

By individual stocks, Apple’s stock price rose about 3.1%, and Amazon also increased by 3%. The Nasdaq’s storming surge reflects the perception that IT companies are the only reliable option amid uncertainty about an early recovery of the U.S. economy. David Donabedian, Chief Investment Officer (CIO) at CIBC, said, "The strength of technology stocks shows investors’ confidence in U.S. IT companies."

Unlike the Nasdaq’s sharp rise, U.S. economic indicators released that day complicated market expectations. The National Federation of Independent Business (NFIB) reported that the small business optimism index for May rose to 94.4 from 90.9 in the previous month, exceeding the expert forecast of 92.0 surveyed by WSJ. The U.S. Department of Labor announced that the number of temporary layoffs and job changes in April was 7.7 million, the second highest since the survey began in 2000.

Because of this, investors are paying close attention to the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve, which is holding a two-day meeting starting that day. The FOMC will announce its quarterly economic outlook on the 10th.

The U.S. government showed strong determination for economic recovery. Kevin Hassett, Senior Economic Advisor to the White House, mentioned in an interview with WSJ that the probability of a fourth economic relief bill being passed before August is very high. He also predicted, "Up to 4 million jobs will be added in June."

This content was produced with the assistance of AI translation services.