Nasdaq Closes Above 4,000 For the First Time in 13 Years
The NASDAQ closed above 4,000 today for the first time since the "dot com" bubble started to burst in 2000.
On September 7th, 2000, the NASDAQ closed at 4,098.35. At the time, the "dot com" bubble was rapidly deflating, but many Americans were holding on to the notion that the downturn was just a "pullback", and that the NASDAQ would soon explode to new highs. This obviously didn't turn out to be the case, as the NASDAQ would trade from a high of over 5,000 all the way down to the high 1100s over the course of just two years. The nation's obsession with the markets soon turned into disgust as the NASDAQ was pared down to a fraction of its former self.
Over the next 5 years, the NASDAQ would slowly fight its way back. In July of 2007, the NASDAQ closed over 2,700, its highest level since the fall of 2000.
In the fall of 2008, disaster struck the NASDAQ once again as the global markets melted down. The progress that the NASDAQ had made was quickly erased, as the index fell to roughly 1,500 points.
Since the fall of 2008, the NASDAQ has nearly tripled in value, as it closed today at 4,017.75.
In the "dot com" era, the NASDAQ was being powered mainly by fluff companies who weren't even close to actually turning a profit.
In this day and age, the NASDAQ is riding the wave of a resurgence in technology companies that is being led by the likes of Facebook and Google. These companies, unlike many in the "dot com" boom, actually make money, and lots of it.
In March of 2000, the NASDAQ hit an intraday and all-time high of 5,132.52.
In the years following, it seemed almost inconceivable that the NASDAQ would ever top this mark again.
However, thirteen years later and the index is now within about 1,100 points of its all-time high.
Filed under: General Market News