By Alex Eule |
Tuesday, June 23
The Nasdaq has risen 32% since April, putting the index on track for its best quarter since the end of 1999. For some, that time period will immediately bring back memories of the dot-com bubble.
In the fourth quarter of 1999, the Nasdaq soared 48%. The index peaked in March 2000 and didn't revisit its highs for another 14 years.
So, yes, there's some reason to be nervous. But times are also different. Tech stocks' latest run is built around the changing landscape for work, school, communications, and entertainment, which are now dominated by tech, at the expense of other sectors. Today, Apple, Microsoft, Amazon.com -- the three largest companies in the S&P 500 -- each hit all-time highs.
As Ben Levisohn notes on Barrons.com, the tech sector now makes up 27% of the S&P 500, the higest level since -- you guessed it -- the dot-com bubble.
For now, tech is helping to lift the broad market, as well. The S&P 500 rose 0.4% today. It's less than 8% off its record high.
DJIA: +0.50% to 26,156.10
S&P 500: +0.43% to 3,131.29
Nasdaq: +0.74% to 10,131.37
The Hot Stock: Mohawk Industries +12.6%
The Biggest Loser: American Airlines -6.2%
Best Sector: Consumer Discretionary +0.8
Worst Sector: Utilities -1.0%
No comments:
Post a Comment