Wednesday, April 26, 2017

The New Nasdaq

The Nasdaq reached a big benchmark yesterday, closing above 6000 for the first time ever. It's finally surpassed the heights it reached during the dot-com bubble in 2000.

The index is different now: Tech stocks only make up 44 percent of the index, versus about 60 percent when the dot-com bubble burst. Even in the last few years, the change has been noticeable. Consumer goods, which made up 3.2 percent of the index at the end of 2011, made up 5.3 percent at the end of March, and consumer services have gone from 18 percent to 21 percent over that same period.

The Nasdaq still includes it share of tech behemoths. Apple makes up more than 8 percent of the index by weighting. Microsoft makes up 5.7 percent; Facebook and Alphabet both make up more than 3 percent.

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