Tech-heavy Nasdaq 100 becomes first major US stock index to reach record highs after coronavirus plunge

REUTERS/Eric Thayer

• The Nasdaq 100 index set a new intraday record on Thursday, becoming the first major US stock index to fully erase losses from the coronavirus sell-off.
• The index peaked at 9,741.97 at 10:32 a.m. ET before sliding alongside peer indexes as the session’s run-up froze.
• eBay’s 9.8% rally led the index higher, while lower-weighted United Airlines traded as much as 17% higher through the day.
• Watch the Nasdaq 100 update live here.

The Nasdaq 100 surged to a new intraday record in Thursday trading, becoming the first major US stock index to retrace its coronavirus decline.

The 100-stock index reached an intraday high of 9,741.97 at 10:32 a.m. ET before retreating with its peer indexes as the day’s rally paused. eBay led the Nasdaq’s run-up, leaping as much as 9.8% after revealing strong demand through the second quarter and boosting its profit guidance.

United Airlines rallied as much as 17% through the day, though its lower weighting in the Nasdaq 100 stifled its contribution to the upswing.

In all, the index rocketed more than 43% in about two-and-a-half months to eclipse its February 19 highs.

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Soaring tech mega-caps fueled much of the index’s recovery as investors piled into popular firms through April and May. The FAANG coalition – Facebook, Amazon, Apple, Netflix, and Google – all leaped over recent months as traders bet on stay-at-home trends to boost tech names. Their gains through earnings season contributed to the Nasdaq composite erasing all year-to-date losses in early May.

Peer indexes didn’t fare as well in Thursday’s session. The Dow Jones industrial average and S&P 500 opened slightly lower before paring losses and trading mostly unchanged through the morning.

The tepid session follows a strong three-day rally for equities despite nationwide protests, lingering coronavirus risks, and fresh US-China trade tensions. The Labor Department announced Thursday morning another 1.9 million Americans filed for unemployment insurance last week, bringing the metric’s 11-week total to nearly 43 million. Continuing claims stood flat at 21.5 million, stymieing some hopes of a rapid labor-market recovery.

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