Wall Street’s love affair with technology stocks shows no sign of stopping.
The Nasdaq, an index that includes the top FAANG stocks, Microsoft (MSFT), Tesla (TSLA) and many other titans of tech, topped 10,000 for the first time ever Tuesday. It failed to close above that level but still finished at a new record high. The index has surged 11% this year.
Investors have flocked to tech giants, such as Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google owner Alphabet (GOOGL), this year in hope that they will post strong sales and earnings growth – despite concerns about the Covid-19 outbreak crippling the global economy and US job market.
The United States is now officially in recession and worries about social and racial unrest have dominated the headlines since the killing of George Floyd, an unarmed black man who was arrested by police officers in Minneapolis, last month.
The broader market has rallied along with big tech stocks. The S&P 500 inched back into positive territory for the year Monday for the first time since February.
Companies in traditionally more value-oriented sectors like energy, retail, health care and financial services have also enjoyed big rebounds since the bottom hit its low point of the year in March.
And the CNN Business Fear & Greed Index, which looks at seven barometers of investor sentiment, has been showing signs of greed in the market since last week.