The Nasdaq Just Did Something It Has Only Done 8 Times Since 1990, and It Could Signal a Big Move in the Stock Market
The Nasdaq Composite (NASDAQINDEX: ^IXIC) is one of three major U.S. financial indexes, the other two being the S 500 (SNPINDEX: ^GSPC) and the Dow Jones Industrial Average (DJINDICES: ^DJI). Whereas the S 500 is the most popular benchmark for the U.S. stock market, and the Dow Jones is considered a barometer for blue chip stocks, the Nasdaq is a growth-focused index weighted heavily toward the technology sector.
In November 2021, the Nasdaq dropped into a bear market amid recession fears brought on by runaway inflation and rapidly rising interest rates. The index declined 36% before reaching its bear market low on Dec. 28, 2022. But the recession many economists expected has yet to materialize. Instead, economic growth accelerated last year, and many stocks rebounded sharply, helped along by cooling inflation and excitement about artificial intelligence.
The Nasdaq finally reached a new record high on Feb. 29, 2024. Crossing that threshold made the new bull market official, a development that has historically portended substantial gains for investors. Specifically, the Nasdaq has only been through eight other bull markets since 1990, and the index has generally moved much higher during those periods.
Source Fool.com
