Nasdaq Composite Reaches 4,000 Level

Nasdaq Composite Reaches 4,000 Level

The Nasdaq composite reached the 4,000 level for the first time in thirteen years last during intraday trading on Monday. However, the index closed at 3,995 for the day. On the other hand, the Dow Jones Industrial Average established a new closing high even as the Standard & Poor’s 500 closed slightly lower.

The Nasdaq composite is currently up by 32.2 percent for the year. It was also able to pass through a key milestone after the S&P 500 and Dow Jones closed above 1,800 and 16,000, respectively. The last time the Nasdaq composite closed above the 4,000 level was on September 7, 2000.

The S&P closed lower by 0.15 percent at 1,802 while the Dow ended higher by 0.05 percent at 16,073. Although the market continued to gain following an improvement in the economy, investors remain cautious about the possibility that interest will increase once the bond-buying program of the Federal Reserve ends.

Garzarelli Capital president Elaine Garzarelli said people remain concerned of a number of things even as the market remains bullish.

Oil prices went down following a breakthrough on the discussion of the nuclear program of Iran,. A decrease of 0.7 percent was noted for January deliveries of benchmark US crude at $94.17. A 0.1 percent decrease was also noted on the prices of Brent crude oil as it went down to $109.96 per barrel.

The deal may reduce tensions in the region as sanctions on Iran may be lifted if the situation continues to improve. It may also result to a lifting of an embargo on oil exports of Iran, which may result to further reduction in prices. However, the increase in oil supplies may not come soon due to the numerous sanctions that remain over the oil exports of Iran.

The monetary policy of the Federal Reserve has encouraged Wall Street recently. The policy reflects a gradual improvement of the US economy and increasing company profits. Last Friday, the S&P and Dow Hones increased by 0.5 percent and 0.3 percent, respectively. On the other hand, the Nasdaq composite increased by 0.6 percent last Friday.

Posted by James Fried on Tuesday November 26 2013, 6:28 AM EST. Ref: USA Today. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0