US Nasdaq index recovers all 2020 losses triggered by Covid-19 | Business

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The tech-rich Nasdaq index turned positive for 2020 on Thursday, boosted by higher share prices for companies such as Amazon, Microsoft and Netflix, which performed well during the Covid-19 lockdown.

The US index has caught up to all losses this year, bringing it back to its level in early January, after rising 1.4% Thursday to 8,979.66. He finished last year at 8,972.

The Nasdaq has fallen sharply with the spread of the coronavirus worldwide, but has now ignored this setback. Marios Hadjikyriacos, an analyst at currency trading company XM, said investors were rushing to “giant tech names that are considered more resilient.”

FAANGM stocks – Facebook, Amazon, Apple, Netflix, Alphabet (Google’s parent company) and Microsoft – were all up on Thursday. Nexflix has risen 32% this year, Amazon is 25% ahead, and Microsoft is 14% ahead, while Apple is up 1%, Facebook is up 1%, and Alphabet is 0.1% ahead.

It is the first time that one of the world’s major stock exchanges has turned positive since the pandemic has led many countries to a form of foreclosure.

Many people work from home, communicate via social media and shop online, which stimulates demand for the products and services provided by FAANGM companies. Amazon in particular experienced a sales boom, with revenues up 26% to $ 75 billion in the first quarter of 2020, or more than $ 33 million per hour.

Joshua Mahony, senior market analyst at IG trading platform, said: “The nature of this current crisis has relied heavily on technological solutions to everyday activities, with the prospect of a market and a place to increasingly digital work guaranteeing optimism for technological stocks within the Nasdaq index. “

But he said technical performance is likely to change “when we see normalcy resume due to a vaccine, traders jumping into currently depressed sectors such as travel.”

The Dow Jones also rose Thursday, up more than 400 points or 1.8% at some point, in hopes that the US economy may reopen soon. The latest employment data shows that another 3 million Americans filed for unemployment benefits last week, bringing the total to more than 33 million in the past seven weeks.

However, investors were reassured that the pace of layoffs in the world’s largest economy had slowed.

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