Revival of US Big Tech M7... NASDAQ Hits Record High

Korea Economic Daily

Summary

As investor sentiment toward US tech stocks recovers, reports indicate that investors are flocking to tech stocks at the fastest pace in 16 years.
The NASDAQ Composite Index has risen 35.4% since its yearly low in April, reaching a record high.
NVIDIA has become the world's first company to surpass a $4 trillion market cap and its share price exceeded $170 for the first time.

Investor sentiment for US tech stocks, which had declined after the reciprocal tariffs announced by the Donald Trump administration in April, is now recovering.

According to the Financial Times (FT) on the 15th (local time), investors have flocked to US tech stocks at the fastest pace in 16 years. In the monthly survey of fund managers by BoA, the share of tech stocks in portfolios has increased at the fastest rate since March 2009, from April—when the NASDAQ Composite Index hit its yearly low—through this month. The proportion of fund managers holding more tech stocks than the market average was 14 percentage points higher than those holding less. Last month, the difference was only 1 percentage point.

FT interpreted, "The rebound in tech stocks, which were hit hardest by the April reciprocal tariffs, signals that investors are ignoring President Trump's recent tariff threats." The sharp earnings growth of the so-called Magnificent 7 tech giants is also building investor expectations.

The NASDAQ Composite Index rose 35.4% from its yearly low on April 8 to close at 20,677.80, an all-time high. NVIDIA, which last week became the world's first company to surpass a $4 trillion market cap, saw its share price exceed $170 for the first time on this day.

Reporter Han Kyungjae hankyung@hankyung.com