Nasdaq’s namesake index, the Nasdaq Composite, finished above 10,000 for the first time, a historic milestone for the tech-dominant index that demonstrates economic resiliency and growth amid a pandemic.
Nasdaq Composite closed at 10,020.35 on Wednesday, June 10, powered by gains in large-cap tech stocks, many of which have enabled people to live and work remotely during lockdown measures.
This year, the Nasdaq Composite has increased about 12%, outpacing the S&P 500’s 1% decline, as the tech sector has performed well. Companies in the biotechnology and technology sectors comprise nearly one-third of the index. Specifically, 14% of the listed companies are in the tech sector, while 17% are in the biotech sector. About 83% of the companies are U.S.-based.
|Nasdaq Composite Milestone||1st Close at Level|
|1,000||July 7, 1995|
|5,000||March 9, 2000|
|9,000||Dec. 26, 2019|
|10,000||June 10, 2020|
The composite’s close comes as Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) and Tesla (TSLA) hit new all-time highs, all of which, except Tesla, are coming off fresh highs on Tuesday, the day when the Nasdaq Composite briefly rose above 10,000 for the first time. The tech stocks have performed better than most during the pandemic as people turn to their services to work and communicate remotely.
Strong performance from the technology giants has helped the index hit these landmark levels over the years, which speaks to how technological advancements and innovation have transformed the markets. While it took nearly 17 years for the Nasdaq Composite to reach the first 1,000-point milestone, the index hit its next four levels during the dot-com bubble.
Many of the tech companies that were public or held an initial public offering (IPO) during the dot-com bubble are continuing to drive markets to record highs today. Microsoft and Apple, which went public in the 1980s, helped power the Nasdaq Composite to 9,000 at the end of last year. And Netflix (NFLX) and Amazon – the latter of which launched its IPO in 1997 – were the best-performing stocks when the index reached 8,000.
Now, as the economy begins to reopen, more companies are starting to look at tapping into the public markets.
“We actually have a pretty healthy pipeline of listing candidates over the coming weeks and months that continue to see the public markets as their path to the future. That sense of access to permanent capital has never been stronger in their minds,” Nasdaq President and CEO Adena Friedman said during an interview with Mike Milken for the “Conversations with Mike” podcast.