NDAQ - Nasdaq Composite enters new bull market amid broad tech rebound
2023-05-09 05:44:22 ET
The Nasdaq Composite ( COMP.IND ) has officially exited a bear market as investors continue to pile back into tech stocks that have been shunned for much of the past year. A slight gain of 0.2% on Monday saw the popular index end the session at 12,256.92, up 20% from its closing low of 10,213.29 on December 28. It took just 89 trading days for index to record the new milestone, and follows a similar path of the related Nasdaq 100 Index ( NDX ), which surged into a new bull market back in March .
Bigger picture: Investors are taking note as the Nasdaq Composite ( COMP.IND ) is the first major market benchmark to regain its bull stature. Elsewhere, the S&P 500 ( SP500 ) is up 16% since its last lows seen in October 2022, while the Dow Jones Industrial Average ( DJI ) is up 17% since this past September. Only another 3%-4% move will see the other two indices restore their bull market status, but some are debating the technicals and what the near-future may hold.
"After this powerful earnings season and a more favorable environment from the Fed, the Nasdaq looks poised for a breakout ," writes SA Investing Group leader Bill Gunderson , after calling the bottom back in January . Others, like contributor Fountainhead , are more cautious, citing a need to conserve cash as creeping complacency calls for a correction . Recall that the Nasdaq last exited a bear market in August 2022, and only two months later, it had entered a bear market again, slumping 20% from its high by October. It's taken seven months since then for the Nasdaq to become a bull, which could make the rally more durable, or possibly lend credence to those calling the recent bullish trends a trap.
Nas...what? When analysts, journalists and reporters refer to the Nasdaq, they mean the Nasdaq Composite ( COMP.IND ), and not the Nasdaq 100 ( NDX ). The difference between the two is that the Nasdaq Composite ( COMP.IND ) measures the change in more than 2,500 stocks listed on Nasdaq Stock Exchange ( NDAQ ), while the Nasdaq 100 ( NDX ) is a market cap-weighted index made up of the 100 largest non-financial companies on the exchange. Both indices track domestic and international firms, compared to popular indexes like the Dow Jones ( DJI ), which only measures the largest American companies.
Related to the Nasdaq bull market
For further details see:
Nasdaq Composite enters new bull market amid broad tech rebound