2021 started off very well for the technology-heavy Nasdaq index, which still set new records in January and February. On 12 February, a new record was set at closing time of 14,095.47, and four days later the index reached a new intraday record of 14,175.12.
After the solid start to the year, the index began to fall, and last week was brutal for investors who are heavily involved in technology and growth stocks.
Nasdaq fell 4.92 percent, but gained momentum this week and has recovered almost all it lost with a rise of 4.69 percent. The technology index has suffered due to a rotation from growth and technology stocks to value stocks, which has led to a recovery for the Dow Jones.
First time since 2016
The industry-heavy index has risen as much as 6 percent this week and closed on Friday to a new best listing of 32,778.64, after an increase of 0.90 percent. It was the fourth straight week with a bigger rise on the Dow Jones than for the Nasdaq.
The last time this happened was in April-May 2016, which is also the only year since 2011 that the Dow Jones has beaten Nasdaq.
Technology sales continued on Friday and the Nasdaq fell 0.59 percent. In addition, the American ten-year-old rose to its highest level in over a year on Friday, reaching a peak of 1.642 percent. Rising interest rates give investors an incentive to look for alternative investments in the stock market.
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