The Nasdaq Composite Index rose more than 3% on Monday afternoon, putting the tech-loaded index within walking distance of exiting the correction zone produced on September 8th. A drop of at least 10% for an asset from the last peak is the commonly used definition on Wall Street of a correction, while reaching a new high after such a decline is often seen as taking the asset out of that bearish stage of trading. Nasdaq Composite Composite,
The correction sank – after setting a record high on September 2 – early last month but is now approaching a new record high above 12056.44, putting the benchmark around 0.8% from its all-time high, according to FactSet data. The Nasdaq rose through a handful of stocks in its rebound from its March lows and Monday’s trading was no different, with Facebook Inc. FB,
Apple Inc. AAPL,
Amazon.com [: AMZN], Netflix NFLX,
And Alphabet Inc of Google, GOOG,
Every day sharp spike. The stock group, informally known as FAANG (and sometimes includes Microsoft Cor. MSFT,
Helped to lift the wider market by the market value of those few companies. The Nasdaq Composite Index recently traded 3.2% higher at 11955, after the index’s rapid rise on Friday. The wider market was also gaining fast, with the Dow Jones Industrial Average [: DJIA] Up 1.1% and the S&P 500 SPX,
Climbing 2% to 3,547. The S&P 500 had threatened to fall into a correction, with a drop to 3,222.76 from its last September peak, but it managed to avoid closing at that level.