After logging a record performance in October, stocks have continued to rise higher. Markets gained significantly on Monday and stuck to their winning ways on Tuesday.
Yesterday’s highlight was the remarkable performance of the Nasdaq 100. The index gained 0.3% yesterday to reach 4,719.05, breaching the previous high set during the dotcom bubble in 2000. The technology-heavy index had set a record closing high of 4,704.73 on Mar 27, 2000.
There are clear indications that markets may continue to move upward for the rest of the month. In this situation, betting on stocks which have made impressive price gains recently and have significant momentum may be a prudent move.
Economic Indicators Boost Broader Markets
Firstly, the index, which comprises the largest non-financial stocks listed on the Nasdaq Composite, has been lifted by broader market optimism. Construction spending increased 0.3% in September while the final Markit manufacturing PMI increased to 54.1, its highest level in six months.
Apart from positive economic indicators, familiar fears about the economic situation in China have eased following last month’s rate cut. Dovish signals from the European Central Bank have also boosted investor sentiment.