Nasdaq breaks 4000 in early trading

The Nasdaq reclaims the 4000 level more than 13 years after it last closed above that key milestone.

Traders on the floor of the New York Stock Exchange.

 

NEW YORK -- The Nasdaq composite topped 4000 briefly for the first time since September 2000 in early trading Monday, a level that most investors thought they would never see again after it crashed 78% to 1114 in the 2000-02 bear market.
The Nasdaq, which entered today's trading up 32.2% this year, is the latest major U.S. stock index to hurdle a key milestone in recent days.

Just last week the Dow Jones industrial average and the Standard & Poor's 500 closed above 16,000 and 1800, respectively, each notching all-time highs in the process. The Nasdaq has topped 4000 before but it's been a long time since it has eclipsed that psychologically important level. The last time it closed above that level was Sept. 7, 2000.
In the first few minutes of trading, the Nasdaq climbed as high as 4007.09 before pulling back and settling back below the historic level. Around 11 a.m. it was up 2 points at 3994. The Dow was was up about 0.2%, and the S&P 500 was trading near the break-even point.
The market's continued gains come amid a period where the economy is improving, but also when investors remain wary of optimism getting too giddy and interest rates shooting up once the Federal Reserve starts to dial back on its market-friendly bond-buying program.
"We continue to be in a bull market," Elaine Garzarelli, president of Garzarelli Capital said this morning. "People are worried about a bear market, people are worried about a bubble, people are worried about the rise of long-term interest rates, but we don't see any of that now."
Meanwhile, oil prices traded sharply lower Monday after a weekend breakthrough over Iran's nuclear program put the commodity back in the spotlight.
Benchmark U.S. crude for January delivery was recently down 1.3% at $93.60 in electronic trading on the New York Mercantile Exchange. Brent crude oil prices, a separate gauge, declined 2% to around $108.82 a barrel.
Iran on Sunday reached an agreement with the U.S., Britain, France, Russia, China and Germany to limit enrichment of uranium to 5%, far below the level needed for nuclear weapons.
Iran got limited relief from sanctions that have hobbled its economy, but an embargo on its oil exports remains in place while negotiations continue for an enduring deal.
The nuclear deal has potentially made it more likely that the sanctions choking Iranian oil exports will eventually be lifted. The nation's oil exports are currently capped at about 1 million barrels a day, according to Bloomberg.
If Iranian oil returns to international markets, the additional supply is likely to make crude less expensive.

Wall Street in recent days continued to be lifted by the Federal Reserve's super easy monetary policy, signs of gradual improvement in the U.S. economy and rising company profits.
On Friday, S&P 500 rose 0.5% to 1,804.76. The Dow gained 0.3% to 16,064.77. The Nasdaq composite jumped 0.6% to 3,991.65.
"Perhaps the Iran nuclear deal, effectively setting limits to Iran's nuclear program, has added to the buoyant risk mood," said Stan Shamu, market strategist at IG in Melbourne, Australia.

In Asia, Japan's Nikkei 225 stock average rose 1.5% to 15,619.13 and Hong Kong's Hang Seng added 0.1% to 23,684.45.
European shares advanced. Britain's FTSE 100 index rose 0.4% and Germany's DAX index added 0.7%.
Gold prices declined over 1% as investors reflected on the deal that would see Iran curb its nuclear activities.

USA TODAY