The Nasdaq Composite, a stock market index that comprises mostly technology-based companies, has seen a 2% climb this week, led by a rally in tech shares. The rally was driven by strong earnings reports from several major tech companies and a resurgence in demand for technology products and services amid the ongoing pandemic.
One of the biggest contributors to the rally was Apple, which reported strong earnings and announced a $430 billion investment in the US economy over the next five years. The company’s shares rose by more than 7% following the announcement.
Another major contributor was Amazon, which also reported strong earnings and announced plans to invest $100 billion in its logistics network. The company’s shares rose by more than 6% following the announcement.
In addition to Apple and Amazon, other technology companies such as Microsoft, Google, and Facebook also reported strong earnings and saw their shares rise by more than 3%.
The rally in tech shares also helped to boost the overall performance of the Nasdaq Composite, which has now risen by more than 20% since the start of the year.
The strong performance of technology shares is a positive sign for the economy, as technology companies are often considered to be bellwethers for overall economic growth. The ongoing pandemic has accelerated the shift to digital and online services, leading to a surge in demand for technology products and services, which in turn is driving the growth of technology companies.
This rally in the Nasdaq Composite is a sign of the resilience of technology companies and it’s expected that the trend will continue in the coming months as the economy recovers from the pandemic.