@investboy：History suggests that the Nasdaq’s underperformance can continue. The Dow beat the Nasdaq by at least seven percentage points in 1978, 1980, and 1992, but most months of Dow dominance came during the popping of the dot-com bubble—a total of 12 from 1999 through 2002. There’s nothing worse than kicking someone when they’re down—but sometimes it needs to be done. That’s the case with the Nasdaq Composite, which is on pace to lag behind the Dow Jones Industrial Average in October by the most in any one month since 2002, and could keep bringing up the rear. There’s no denying that the stock market did very well last week. The Dow gained 5.7%, while the S&P 500SPX –0.75% rose 4%, and the Nasdaq advanced 2.2%. It was the Dow’s fourth consecutive week of gains. And what a four weeks it has been. The Dow has jumped 13.95% in October and is on pace for its best month since January 1976, when the blue-chip benchmark surged 14.41%. The other indexes have fallen short of those gains: The Russell 2000 has climbed 11%, the S&P 500 has gained 7.99%, and the Nasdaq Composite has risen a paltry 3.9%. That kind of outperformance by the Dow against the Nasdaq doesn’t happen very often. The Dow has outperformed the Nasdaq by more than nine percentage points this month, the most since February 2002, when it outperformed by 12.35 percentage points, and the seventh-largest monthly gap in 45 years. Monday’s losses--the Dow is off Blame the Nasdaq’s underperformance on its biggest stocks. This past week saw Meta Platforms shed 24% of its value, while Alphabet dropped 4.8%, Amazon.com fell 13%, and Microsoft slid 2.6%, all after reporting earnings. Only Apple, which rose 5.8% after reporting its results, finished the week higher, though it is down 1.1% on Monday. Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments