A technology stock “meltup” put the Nasdaq-100 index on the verge of exiting bear-market territory Thursday.
The index NDX , heavily weighted toward megacap names, was up 2.9% at 12,727 Thursday afternoon, and traded as high as 12,880.98. A close at or above 12,815.21 would mark a rise of 20% from its Oct. 17 low close of 10,692.06, meeting widely used criteria for exiting a bear market. The index is tracked by the popular Invesco QQQ Trust QQQ .
Facebook parent Meta Platforms Inc. META led the surge Thursday after reporting stronger-than-expected results along with a major share buyback announcement. Earnings from Apple Inc. AAPL , Amazon.com Inc. AMZN and Google parent Alphabet Inc. GOOG GOOGL were due after the closing bell.
The article calling it a 'melt up', 'herd behaviour', and a 'head fake' is yet another example of Market Watch and other news sources warning investors that this rally cannot last, in their opinion. However, tech investors appear to be looking ahead to anticipated rate declines.