Tech stocks propelled the Nasdaq Composite to a new high on Friday for the first time since July in a sharp turnaround after falling as much as 15 per cent during the summer. The technology-heavy index rose as much as 1.5 per cent to 18690.01, surpassing the previous intraday peak of 18671.07. It gave up some of the gains to close at 18518.61 — up 0.6 per cent for the day but below its record closing level. “Each time we panic, the market continues to rise.
Irene Tunkel, chief US equity strategist at BCA Research, said the “Magnificent Seven” large tech companies were benefiting from both stronger earnings and investor optimism over artificial intelligence. In a reference to next month’s US presidential election, in which Donald Trump is facing Kamala Harris, she added that such investor enthusiasm for tech was “not especially sensitive to the economic or election cycles”.