US Nasdaq Surpasses 15,000 for the First Time Ever '50 Years Since Its Launch in 1971'

Tech Stocks Continue to Surge in the COVID-19 Era

[Asia Economy New York=Correspondent Baek Jong-min, Reporter Park Byung-hee] The Nasdaq index in the U.S. stock market surpassed the 15,000 mark for the first time in 50 years since its inception in 1971. This was due to the continued surge of technology stocks fueled by the untact trend that began with the COVID-19 pandemic. The S&P 500 index, which represents the U.S. stock market, is also expected to continue its upward rally.

On the 24th (local time), the Nasdaq index closed at 15,019.80, up 0.52%. This is the first time the Nasdaq index has closed above 15,000. It took 136 trading days for the Nasdaq to rise from 14,000, which it surpassed in February, to 15,000.

Although the Nasdaq seemed to continue its rapid rise from last year into this year, concerns over inflation caused a temporary downturn. However, as U.S. Treasury yields declined and stabilized, the index re-entered an upward trend. The spread of the Delta variant and the possibility of the Federal Reserve delaying tapering (reduction of asset purchases) also supported the Nasdaq rally. Among individual stocks, leading stock Apple recently surpassed $150, continuing its record-high streak, while core tech stocks such as Microsoft (MS), Facebook, and Alphabet mostly maintained their upward momentum, driving the index higher.

The Nasdaq’s breakthrough of 15,000 is also notable when compared to the Dow Jones Industrial Average, which is centered on traditional industrial stocks. While it took the Dow 117 years to surpass 15,000 in 2013, the Nasdaq achieved the same milestone in just 50 years. Art Hogan, Chief Investment Strategist at National Securities, told MarketWatch, "The Nasdaq crossing 15,000 will have a significant impact on investor sentiment."

He explained that not only investors but most Americans will recognize the Nasdaq reaching this historic level and will take an interest in the stock market. Alongside the strength of tech stocks and the Nasdaq, the S&P 500 index, which represents the entire U.S. stock market, is also expected to continue its record-breaking run. Most of the leading tech stocks driving the U.S. stock market, including Apple, are also included in the S&P 500 index.

On the same day, Wells Fargo significantly raised its year-end forecast for the S&P 500 index from 3,800 to 4,825. This implies an expected additional rise of about 8% after the S&P 500’s 19.4% increase this year. UBS also set its S&P 500 target at 4,600 for this year and 5,000 for next year.

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