NASDAQ Composite Index Cruising Towards All-Time High with Strong Tech Support

NASDAQ Composite IndexNASDAQ Stock Index

With the U.S. experiencing one of the longest periods of straight economic growth ever witnessed by the country, many investors are keen on finding which industry will continue to power this growth and bring about strong returns on investments. One of the juiciest investment opportunities out there, however, is in the most dominant sector of our current time: technology. With the NASDAQ stock index tracking some of the largest technology companies in the world, it has become a very attractive target of investment due to its continued projected growth.

The fact is that the NASDAQ composite index, with its focus on the dominating tech behemoths of our time, has soared to all-time highs and looks on pace to continue to do so as the tech industry shows no signs of slowing down.

Tech earnings in general are up, with companies like Apple Inc. (NASDAQ:AAPL) and Facebook Inc (NASDAQ:FB) setting all-time highs in terms of share value.

In fact, of the four major tech stocks included in the oft-referenced FANG—which includes Facebook, Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Alphabet Inc (NASDAQ:GOOG), the parent company of Google—have all shot up over 30% since the beginning of the year, with the exception of Alphabet stock, which instead has risen at a very respectable 23%.

The NASDAQ stock index is in a prime position to continue to be a dominant market tracker as the value of the index continues to rise. There isn’t much standing in the way of these major tech companies continuing to see massive gains as time draws on, with their importance only increasing with each new technological development.

NASDAQ stock index

Chart courtesy of StockCharts.com

Tech Stock Gains 2017

When examining the NASDAQ stock index, it’s always good to use some of the bigger tickers on the composite as barometers of the overall health. For instance, Apple is one of the largest companies on earth and a hugely important part of the technology world. It is currently experiencing all-time highs in terms of share prices.

And to make things better for AAPL stock, Apple doesn’t seem to be resting on its laurels. The company is pushing hard on its new iteration of the “iPhone,” which will mark the tenth anniversary of the release of the smartphone that changed the world. The new device has been linked to all manners of technological improvements, from augmented reality features to wireless-charging batteries to advanced screens.

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In any case, the release of the “iPhone 8” will likely be another huge success, because models that have done less to innovate have in the past still sold well for Apple, paving the way for a rather dramatic potential impact from the next iPhone.

Not to be outdone, Apple’s longtime rival Microsoft Corporation (NASDAQ:MSFT) has released several new products itself, including its first ever desktop called the “Surface Studio” that has been branded by some talking heads as the “Mac killer.”

In any case, the company has also attempted to innovate in key areas and its stock has seen a strong 18% growth so far in 2017, putting it at the lower end of the tech industry but still well within a strong return on investment value.

Which is to say that the biggest companies on the NASDAQ composite index are performing well. Very well. With massive gains like the one we’ve seen so far, the NASDAQ YTD chart clearly shows that 2017 has been a kind year to technology stocks. While some may peg these companies as overvalued, there doesn’t seem to be much on the horizon that could derail their current success.