The Crazy Rally of the Nasdaq 100

How the Tech-Heavy Index Has Soared to New Heights

The Nasdaq 100 index has been on a tear in recent months, reaching new all-time highs. The index, which tracks the performance of the 100 largest non-financial companies listed on the Nasdaq stock exchange, has gained over 20% since the beginning of the year.

What's Driving the Rally?

There are a number of factors that have contributed to the Nasdaq 100's strong performance. One factor is the strong performance of the technology sector. The tech sector has been a major beneficiary of the pandemic, as companies have been forced to adopt new technologies to work and learn remotely.

Another factor that has helped the Nasdaq 100 is the low interest rate environment. Low interest rates make it cheaper for companies to borrow money, which can lead to increased investment and growth. Additionally, low interest rates make it more attractive for investors to buy stocks, which can also drive up prices.

Is the Rally Sustainable?

The Nasdaq 100's rally has been impressive, but it is important to note that it is not without risks. The tech sector is still facing a number of challenges, including the ongoing pandemic, the global chip shortage, and the rising risk of inflation.

However, the Nasdaq 100 has historically been a resilient index, and it is likely to continue to perform well in the long term. The index is home to some of the world's most innovative and successful companies, and these companies are well-positioned to benefit from the continued growth of the technology sector.