For the first time in its existence, the Nasdaq Composite Index closed above 10,000 on Wednesday.
With the US economy officially in recession due to the closure of businesses in the face of the coronavirus pandemic, the technology-laden Nasdaq Composite Index gained 66.59 points, or 0.7%, to end the day on 10,020.35.
The rebound in technology-related stocks comes after a series of fresh record closing highs for the Nasdaq Composite Index. A finish at or above 10,000 represents the fastest 1,000-point milestone for the Nasdaq Composite Index, 114 trading sessions, since the 49 sessions the index took to surge from 4,000 to 5,000 in 2000, MarketWatch reported.
The US stock market has rebounded quickly from its low in late March. The Nasdaq Composite Index and its peer index, the Nasdaq-100, composed of the largest members of the Nasdaq Composite, is weighted heavily with technology businesses which have been seen as benefiting commercially from the coronavirus pandemic imposed social lockdowns.
The Nasdaq Composite Index was launched in 1971, and topped 10,000 in 49 years, whereas the Dow Jones hit 10,000 points in March 1999, 103 years after its foundation.
The five companies that have seen the biggest share markets increases in 2020 are:
- Tesla has had a staggering 364.51% rise this year to date. CEO Elon Musk in an email to workers said it was time to bring the Tesla Semi commercial truck to “volume production”. The Califronia-based company is making and beginning to deliver its Model Y SUV.
— Cate Sullivan (@catebsullivan) June 5, 2020
- NVIDIA, based in California and run by CEO Jensen Huang has seen its stock rise 142.06% in the year to date. Known for its Graphics Processing Units in gaming, NVIDIA also provides computing technology for data centres. Last month, it unveiled the Nvidia A100 artificial intelligence chip, the third generation of Nvidia’s AI DGX platform.
- JD.com, the Chinese e-commerce company, has seen a 120.78% rise in stock value this year. The Beijing-based business raised HK$30.1 billion (US$3.9 billion) in its Hong Kong share sale, people familiar with the matter said, cementing the world’s second-biggest listing this year, Bloomberg reported. JD.com has it largest annual online sales event on 18 June.
- Regeneron Pharmaceuticals, a biotechnology company in New York, has had a 96.94% rise in its stock value this year. Regeneron and Sanofi announced on Thursday that it has begun potentially registrational trials investigating Dupixent in a number of diseases driven in part by type 2 inflammation, including chronic obstructive pulmonary disease. Regeneron is testing a potential treatment in human trials to prevent and treat people with COVID-19.
- Skyworks Solutions manufactures semiconductors for use in radio frequency and mobile communications systems and Apple is a big customer. Based in Irvine, Califronia, its shares have risen 92.07%.
The Nasdaq Composite Index breaking through the 10,000 barrier came as the US Federal Reserve pledged to support the economy and financial markets but refused to change the official rate of interest
Asia’s stock markets saw a 10-day winning streak come to an abrupt finish and Europe’s main bourses all opened with a heavy thud on Thursday. Singapore’s Straits Times Index closed down 3.4%, Japan’s Nikkei index dropped 2.8% with Hong Kong’s Hang Seng Index falling 2.3% and the Shanghai Composite Index closed down 0.8%. After seven successive rises. Australia’s S&P/ASX 200 index fell 3.1% while South Korea’s Kospi index dropped 0.9%..