Facebook, Apple, Amazon and Microsoft shares all struck new all-time highs as the technology companies-heavy Nasdaq composite powered to its second straight daily record on Tuesday.
Despite the US being hammered by the coronavirus pandemic – more than 114,000 people officially died of COVID-19 in the US – and the racism rallies in many states after the death of George Floyd – buying shares remains attractive against the investment alternative of zero interest rate government bonds, which as nil return instruments have become another form of cash.
The Nasdaq briefly traded above 10,000 for the first time on Tuesday before a slight fall to end at 9,953.75. This year, the Nasdaq has led the major US indexes in recovering from the coronavirus-induced market meltdown – it was the first to erase losses year-to-date, the first to beat its February high and is up 11% this year.
Facebook, Apple and Amazon increased more than 3% on Tuesday with Microsoft up around 0.8%. Shares of Apple increased almost 4% to hit a new record high on reports that Apple will use ditch Intel and its own processors in its Mac computers.
The combined market value of Microsoft, Facebook, Apple and Amazon is now close to US$5 trillion, with Apple claiming the top spot at nearly US$1.5 trillion. Facebook is the only one of the group with a market cap below US$1 trillion, CNBC reported.
Google’s parent company Alphabet was the only one of the five largest technology stocks not to close at an all-time high on Tuesday. It is about 5% behind its all-time high of $1,524.87, achieved on 19 February.
Several other leading technology stocks also performed impressively on Tuesday. Netflix jumped 2.4%. chipmaker Advanced Micro Devices increased 5.7%, and graphics processing unit manufacturer Nvidia rose nearly 3%.
Wall Street has been rising steadily from its March lows, however the S&P 500 index and the Dow Jones industrial average dropped on Tuesday, falling 1.2% and 1.5%, respectively, On Monday, the S&P 500 erased its 2020 losses.
The Australian Stock Exchange increased for the seventh successive day on Wednesday, to reach a three-month high.