Let’s explore the reason for Surging Nasdaq
- Nasdaq hit new high on the back of shares like Apple & Amazon.
- A stimulus package row is getting louder from US government of $1 trillion after 33% fall in US GDP in second quarter.
- This stimulus will provide further boost to liquidity and will support further rally.
- US- China relationship is real threat to equities with further increase in tension as US government is planning to ban Tik-Tok application.
- Asian markets are trading with green biased this morning. (7:33 A.M)
- SGX Nifty is in green note this morning. (7:33 A.M.)
Why Nasdaq hitting new high?
- Technology stocks are surging on the back of work from home culture resulting in surging stocks like Amazon, Apple, Netflix and other IT stocks.
- The rising corona cases has restricted the out door activities of people and resulting in surge in internet usage, shopping from internet, home streaming of movies and other IT related activities.
- Another trigger for surging stock is rising hope of $1 trillion stimulus package by US government after 33% fall in US government last week.
- This stimulus will provide further support to liquidity and result in further boost to the rally.
- US and China relationship is getting worst as now US government has planned to ban applications like Tik-Tok. This will further intensify war among these nations.
- Cases are rising at fast pace worldwide with U.S. toping the list. This is another risk for US equities.
- Dow Jones Industrial Average increased by 236.08 points, or 0.89%, close at 26,664.40.
- The S&P 500 rose by 23.49 points, or 0.72%, ends at 3,294.61.
- Nasdaq Composite Index hit new high and gained by 157.52 points, or 1.47%, close at 10,902.80.