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Tech-heavy Nasdaq gets a boost

After 28 percent gain in 2017, index has risen by another 15 percent so far

Samar Srivastava
Published: Jul 30, 2018 10:54:51 AM IST
Updated: Jul 31, 2018 02:28:46 PM IST

Tech-heavy Nasdaq gets a boostImage: Shutterstock

If oil, the second best performing asset class so far this year, has stunned investors, there can be no surprise about the first one: The technology-heavy Nasdaq index. After a blow out 28 percent gain in 2017, the index has risen by another 15 percent as of July 26 as investors pile on to stocks that are upending traditional business models for a variety of industries. Bringing up the rear are emerging markets that have seen large outflows as a result of tightening US monetary policy. Fund managers would rather stick to investments in markets and currencies they understand best.

Tech-heavy Nasdaq gets a boost
Higher interest rates have also resulted in a strengthening US dollar. Bond markets, which had a disastrous 2017, have paused till now. As a result, the category hasn’t lost too much this year. Commodities have had a mixed year. After a secular rise in the second half of 2017, they’ve come to a halt as the market figures out what impact a trade war will have, if at all any.

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