At its highest close in 15 years, USTECH Nasdaq rallied up another 0.7% on Friday.
Not quite reaching its record high of March 2000 at 5048.62, the USTECH index closed on Friday at 5026.42 after 3 weeks of climbing over the 5000 level. The stocks on the USTECH100 have been especially successful over the course of the current year, driving the index up.
Even with Apple leaving for the Dow Jones index on 19 March, companies such as Facebook are sustaining the tech-rich index, with Facebook shares up to record highs on Friday at $84.50 up by 1.26%. With 1.393 billion users and with increases in smartphone users of Facebook up to 84.6%, this global communication phenomenon is still growing. Only last week Facebook announced a new feature to send cash from friend to friend through Messenger.
eMarketer reported figures in December 2014 that Facebook held 7.75% of Net Digital Ad Revenue share worldwide, up from 5.75% in 2013 and in second place only to Google which holds 31.10%. The total revenue from digital advertising per year is $146.42 billion.
The revenue and profit growth for the USTECH firms have been built up over several years to increase to this point, giving the index a foundation of sustainability rather than the characteristics of the 2000 dot com bubble. Nike also did well last week with an increase of 3.72% on Friday taking the total climb for the last six months to 25%.
In the meantime, other U.S indices advanced on Friday; USA30 [Dow] climbed 0.9%, 168.62 points to 18127.65 with the USA500 [S&P 500] rising 0.9%, 18.79 points to 2108.06.
The other record breaker on Friday was the USA2000 [Russell 2000] which gained 0.9% with an increase of 11.51 points. All the excitement on stocks was initially caused by the Federal Bank statement omitting the word ‘patient’ when referring to a rise in interest rates. However, since last week’s much- anticipated statement, analysts are reviewing the implications and the full structure of the FED report and are now assessing that a June hike is not probable.
MT4 Chart: USTECH100 [Nasdaq]
MT4 Chart: Facebook
MT4 Chart: Nike
MT4 Chart: USA2000 [Russell 2000]
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