Nasdaq Composite, Daily chart
Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.
The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.
However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.
The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.
The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.
The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.
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