The NASDAQ100 scored an extraordinary feat in June 2020 as it surpassed 10,000 for the first time in history. While the remarkable recovery has seen the Nasdaq hit new heights, the S&P 500 and Dow Jones – along with other global equity markets such as the DAX 30 and FTSE 100 – remain below their COVID-19 peaks. In turn, we can see Stellar’s performance of major tech stocks such as Microsoft, Facebook, Google, Apple, and Amazon, all of which have a significant influence on the Nasdaq, as the main drivers of the recovery rally. In addition to that, you might want to visit http://www.cnie.org/forex/nas100-brokers.html if you really need big Brokers that trade NAS100.
Nasdaq 100 Estimated Price:
– Nasdaq broke the 10,000 psychological significance mark for the first time in June 2020.
– Bulls rejoice at this significant milestone, but there is still a lot of uncertainty.
– First and foremost is the decision of the upcoming FOMC level which has the ability to trigger or leave a rally.
However, even these innovators and industry leaders have foundations in an economy that is still fragile. As such, many market players call the current recovery overbought and indeed, euphoria is widespread as company stocks surged bankrupt (Hertz) to provide huge returns to those willing to take the risk.
Elsewhere, companies with little product or name recognition (Nikola) have surpassed the market cap of household names such as Ford and General Motors. Overall, it is increasingly difficult to refute the claim that a detachment of fundamental economics has taken place – at least to some degree.
S&P 500 Striped Red With Money Supply (M1) In Blue
Detractors will say the rally is being fueled by the economic recovery and, perhaps above all, the Federal Reserve. With the onset of coronavirus and quarantines, central banks are expanding balance sheets at a blistering pace and the money supply in the United States has surged in a similar way to the Nasdaq 100, Dow Jones, and S&P 500.
It is almost poetic that the day before the FOMC level decision in June, the Nasdaq hit a massive psychological milestone because the central bank has the potential to add more aid for recovery or eliminate it.