{"id":17381,"date":"2023-06-02T17:03:35","date_gmt":"2023-06-02T21:03:35","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/nasdaq-sp-500-set-2023-highs\/"},"modified":"2023-06-02T17:03:36","modified_gmt":"2023-06-02T21:03:36","slug":"nasdaq-sp-500-set-2023-highs","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=17381","title":{"rendered":"Nasdaq, S&P 500 Set 2023 Highs"},"content":{"rendered":"
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Topline<\/h2>\n

The tech-heavy Nasdaq hit a 14-month high Friday, largely driven by massive gains from a handful of the widely tracked tech index\u2019s largest companies, while the Dow Jones Industrial Average and S&P 500 each hit key milestones of their own as optimism is aplenty on Wall Street.<\/p>\n

Key Facts<\/h2>\n
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The Nasdaq Composite closed at its highest level since April 21, 2022, wiping out what was once as steep as a 40% loss last year as investors dumped rate-sensitive tech stocks while the Federal Reserve hiked interest rates to their highest level since the mid-2000s.<\/p>\n<\/p><\/div>\n

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But largely resilient earnings and unfettered optimism about what artificial intelligence could mean for future bottom lines helped the Nasdaq surge 27% so far this year, far outpacing the S&P 500 and the Dow Jones industrial average\u2019s 12% and 2% year-to-date gains, respectively.<\/p>\n<\/p><\/div>\n

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Buoying the Nasdaq\u2019s recovery are the mega-cap companies largely generating the biggest AI buzz; chipmakers Nvidia and AMD and generative AI leaders Alphabet and Microsoft are each up more than 40% year-to-date.<\/p>\n

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The Nasdaq\u2019s milestone Friday came amid a strong day overall for stocks, as the S&P and Dow each gained more than 1% after government data revealed a strong labor market.<\/p>\n<\/p><\/div>\n

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In fact, the Dow\u2019s 700-point gain marks its best day since January 6.<\/p>\n<\/p><\/div>\n

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The S&P\u2019s closing price of 4,283 is its highest since last August, though it remains about 10% below its peak achieved in 2022.<\/p>\n<\/p><\/div>\n<\/div>\n

Big Number<\/h2>\n

Nearly $4 trillion.<\/strong> That\u2019s how much market cap the seven biggest companies listed on the Nasdaq (Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta) have gained in 2023.<\/p>\n

Surprising Fact<\/h2>\n

The S&P is now at the same level it closed at March 22, 2022, the first rate increase of the current Fed hiking cycle, noted<\/a> Bespoke Investment Group.<\/p>\n

Tangent<\/h2>\n

The CBOE VIX Index, a volatility metric, which acts as a \u201cfear gauge\u201d for Wall Street, sank nearly 6% Friday to its lowest level since February 2020, shortly before pandemic lockdowns.<\/p>\n

Key Background<\/h2>\n

The U.S. economy \u201cis not showing strong signs\u201d that a recession will come this year, Oanda analyst Ed Moya declared Friday, saying steady output and consumer spending is \u201cshort-term good news for the stock market.\u201d The Nasdaq is coming off of its worst year since 2008 after it crashed 33%, losses that far outpaced the Dow\u2019s and S&P\u2019s. Fueling the tech investor fire was the November release of the viral, Microsoft-backed ChatGPT AI chatbot, which led to a spike in investments in generative AI developments and the hardware powering the technology.<\/p>\n

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Nvidia Hits $1 Trillion Market Value (Forbes<\/em>)<\/p>\n

These 7 Tech Stocks Command Almost 90% Of The S&P 500\u2019s Gains\u2014Signaling Market Rally May Not Be So Healthy (Forbes<\/em>)<\/p>\n<\/div>\n