Date
22 November 2017
Tech stocks rode a wave of deals overnight, driving Nasdaq above 5,000 for the first time in 15 years. Photo: Reuters
Tech stocks rode a wave of deals overnight, driving Nasdaq above 5,000 for the first time in 15 years. Photo: Reuters

Nasdaq flirts with dot-com high

Nasdaq punched through 5,000 overnight Tuesday, the first time it closed above that level since the 2000 dot-com bubble.

Tech stocks rode a wave of deals while the S&P 500 and Dow indices hit records after economic data pointed to a slowly accelerating economy.

After oscillating around the peak for much of the day, the Nasdaq Composite Index surged in late afternoon to finish firmly above the psychological barrier, only the third time the index had ended above 5,000 in nearly 15 years, Reuters reported Tuesday. 

The index, driven by a six-year bull market, is just 40 points from its all-time closing high of 5,048.62 on March 10, 2000.

“You have an entirely different make-up of stocks. Real earnings and revenue are driving the Nasdaq now,” said Douglas Depietro, managing director at Evercore ISI in New York.

“Anything with a website went to US$100 back then.”

The biggest driver was Google Inc. and chip makers NXP Semiconductors N.V. and Intel Corp., as well as network equipment maker Cisco Systems Inc. after news of two big deals.

Shares of NXP rose 17.3 percent to US$99.56 after it agreed to buy smaller peer Freescale Semiconductor Ltd. to create a US$40 billion company.

Hewlett-Packard Co. said it is buying Wi-Fi gear maker Aruba Networks Inc. for about US$2.7 billion, the biggest deal for the world’s No. 2 PC maker since 2011. 

“Going forward for the rest of the week, you may see a little pause because people are waiting for the economic data release Friday, because that may give an indication what the Fed’s going to do about interest rates,” said Depietro.

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