The year 2015 is springing surprises, one after another, for the Nasdaq – the second-largest U.S. stock exchange by market cap and trading volume. The tech-heavy index closed above the 5,000 mark for the first time in early March since the dot-com boom took the technology sector by storm in March 2000.
The tech-bias is actually benefitting the index this year. Investors should note that whenever the U.S. economy shifts gear from recession to recovery, economically sensitive sectors such as Information Technology gains momentum (per Fidelity). According to the research house, greater consumer optimism and a pickup in corporate spending normally boost tech stocks.
The Zacks Earnings Trend indicates that total earnings for Q1 are expected to expand 2% year over year on 2.8% higher revenues. We would like to note that while the overall technology sector is well poised for growth this year, a few companies are specifically taking Nasdaq and the related ETFs to new highs.
At the time of writing, PowerShares QQQ ETF (QQQ) hit its all-time high in adjusted closing price on April 24, 2015 at $110.54 per share. Let’s find out which are stocks backing this Nasdaq ETF north-bound journey.