On Thursday, June 18, Nasdaq stocks surged as investors flocked into the US technology shares due to a belief in the strength of the economic recovery.
Last year, tech shares generally behaved well when interest rates are lower, unexpectedly rallied on Wall Street.
It is because investors see this as a relatively safe investment during times of economic disorder. This phenomenon has happened again, even though the interest rates are bound to spike, as announced by the US Federal Reserve at its latest policy meeting.
FAANG stocks climbed between 0.80% and 2.20% as investors bet that a stable economic rebound might boost demand for their brands in the long run.
Facebook Inc closed Thursday’s session with a jump of 1.64% or a net increase of $5.43. This sent the stock price higher at $336.51 per share.
Consequently, Apple Inc closed Thursday’s session with a 1.26% boost or a net increase of $1.64. This sent the stock price higher at $131.79 per share.
Moreover, Amazon.com, Inc closed Thursday’s session with a 2.17% spike or a net increase of $73.99. This sent the stock price higher at $3,489.24 per share.
Also, Netflix Inc closed Thursday’s session with a 2.20% progress or a net increase of $5.93. This sent the stock price higher at $498.34 per share.
Furthermore, Google parent’s Alphabet Inc closed Thursday’s session advancing 0.80% or a net increase of $19.42. This sent the stock price higher at $2,434.87 per share
As a result, the Nasdaq Composite index soared 0.87% or 121.67 points to 14,161.35.
Although it ended 13 points short last Monday, it was still the benchmark’s second-highest close ever.
S&P 500 Closed Flat
Meanwhile, the S&P 500 index ended flat, losing 1.84 points or 0.04% to 4,221.86. The marginal decline was the benchmark’s third negative close in a row.
While the Dow Jones Industrial Average index finished negatively, a more pronounced drop where it posted its fourth straight low. It plummeted 0.62% or 210.22 points to 33,823.45.
As of the moment, many investors are still digesting the US Federal Reserve’s hawkish monetary policy, which projected the first post-pandemic interest rate hikes in 2023.
Fed officials cited an enhanced economic outlook in the meeting as the country’s economy recovers fast from the COVID-19 pandemic. The overall expected growth is 7.00% this year.