NASDAQ on the move to new heights

There has been a tremendously quick rotation back into the US technology index, NASDAQ, from the other major US indices and has broken past record highs set in February & May 2021. While the Dow and S&P 500 have tried to follow suit they have lagged in comparison to having a strong breakout as the NASDAQ has in the last month with indications this trend could continue into July 2021. Being a possible reaction from the previous FED meetings which pointed to a potential interest rate rise in 2022, that came as a surprise for most considering the magnitude of the economic shifts which have happened since 2020, with signs that labour participation has not reached previous pre-pandemic levels nor has M&A activity. This shift has demonstrated the desire for growth stocks or assets by most investors who are seeking as much of a return as possible while inflation runs turbulently and resources outside of building materials may not exceeding past such current high levels.

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The major NASDAQ weighted tech stocks such as Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB), Google (NASDAQ:GOOG) and other NASDAQ darlings have been lifting the index to new heights riding the tailwinds of this deviation the previous resource, inflation hedge focused trend. There have been similar moves in overseas markets outside of the US with technology listings in other countries also regaining attention for funds to be rotated into looking for great potential in others and not just the dominant US brand names like Google. This includes local ASX listings like Altium (ASX:ALU), Xero (ASX:XRO) and buy now pay later behemoth Afterpay (ASX:APT) which have been attempting to reverse the downward trend since moving to all time highs set across the board, including the broader developed markets in the earlier half of the year.

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European indices haven't been alone in the heavy demand for returns outside of other asset classes with the inflation restructure on positions inside the German DAX, UK FTSE100, French CAC 40 and Spanish IBEX35 (with rumours of Spain being the next financial crisis that the European Union will need to address if Spain is left to it's own devices) also ascending to record breaking numbers on the overall broader index.