Wall Street kicked off November with a strong showing. The Nasdaq 100 has finally come back to where it was when the index was at the top of its game during the dot-com stock bubble 15 years ago. The highest 2000 closing record was achieved on March 27, 2000 at $4,704.73. The Nasdaq 100 closed at the beginning of this month at $4719.05. The stock index, which is comprised of biotech and tech sector companies, has regained and surpassed the loss it suffered after the tech crash of 2000.
The market crash during the 2000 to 2002 bear market was led by the biggest tech bubble crash in history. After such a major event, many were left wondering just how the tech market could recover. But factors like inexpensive money and the massive stimulus from the U.S. Federal Reserve has helped the market climb out of the hole.
But skeptics wonder if the rises are sustainable and warn that another market bubble is brewing. Investors seem unphased and willing to take risks despite the expensive company valuations the tech industry is known for, the threat of the upcoming interest rate hikes, and potentially lower earnings due to a stronger US dollar. Also, the Nasdaq is not the same market responsible for the millennial crash.
Other indicators of economic health are the prevalence of lending services, such as car title loans Corpus Christi, which has remained stable for the third quarter in a row.
The Nasdaq was the go-to index of the 1990s when tech stocks like Intel, Oracle and Microsoft ascended to meteoric price levels almost overnight. Anyone with an idea and an IPO could get in on the game. Amateur day traders and investors were making a killing. Until the bubble burst.
Today’s Nasdaq is a more mature, stable environment. Investors are more cautious. And Nasdaq is no longer all tech. There are a variety of other offerings including healthcare, current favorite of the moment–biotech– and social media stocks.
The recent rise to match or surpass all time highs is attributed more to the biotech sector than the tech sector, although tech titans like Apple, Google, Facebook, and Twitter have contributed considerably to Nasdaq’s growth. Tech is still highly represented in the Nasdaq 100, with 38 of the companies being in the tech field. And the top five performers of the Nasdaq-100 Technology Sector Index are companies with market capitalization ranging from $13 billion to as high as $500 billion.
Heading into its historic trading session, the top five Nasdaq 100 year to date winners included:
- NVIDIA Corporation. NVIDIA is the top performing constituent of Nasdaq-100 Technology Sector Index, gaining more than bigger players like Google, Facebook, and Apple. Shares are up 41.50% year-to-date.
- Google Alphabet. Second on the list with a 35.40% return year to date and no signs of slowing down.
- Facebook comes in third at 30.70% stock returns year to date.
- Cognizant Technology Solutions Corporation is up by 29.34% this year. The IT, consulting and business services provider is ranked as one of the fastest growing companies in the world.
- Citrix Systems comes in 5th on the list. The company’s shares have risen 28.68% year to date thanks to its virtual and mobile software solutions.