Missed out on the nearly 40% surge in US tech stocks in the first half of the year? Don't worry, there's still a second chance in the second half of the year!
Since this century, when the Nasdaq 100 rises more than 10% in the first half of the year, it usually continues to rise in the second half! There have been precedents of a skyrocketing first half + a continued surge in the second half, not to mention Apple, Microsoft, and NVIDIA, whose market value has increased by a total of $2.4 trillion in the first half of this year alone!
In the first half of the year, the Nasdaq index defied expectations and rose by over 30%, while the NASDAQ-100 saw an even more impressive increase of nearly 40%.
With such significant gains already, can the market continue to rise in the second half of the year? Don't worry, there are still opportunities ahead!
According to data compiled by Investor's Business Daily, over the past decade, when the NASDAQ-100 performs strongly in the first half of the year, it usually continues to soar in the second half.
Since 2000, there have been nine instances where the Nasdaq 100 has seen a first-half increase of over 10%, and this year's 38.7% gain marks the best first half since the dot-com bubble.
What's even more noteworthy is that, on average, the Nasdaq 100 has seen a 15.3% increase in the second half of the year since the beginning of this century. Furthermore, after a first-half increase of over 10%, the index has risen in the second half of the year over three-quarters of the time.
So, is there a precedent for a strong first half followed by an even stronger second half?
Let's take a look back at the U.S. tech stocks in 2003: Despite many investors believing that the rebound at the time was too significant and premature, the Nasdaq 100 remained resilient, surging by 22.9% in the first half of the year and continuing to rise by 21.7% in the second half.
What about this year's market? Well, we have tech giants like Apple, Microsoft, and NVIDIA, whose market values have collectively increased by a staggering $2.4 trillion in the first half alone!
Perhaps everything is just as history and Adam Turnquist, Chief Technical Strategist at LPL Financial, have suggested: The U.S. stock market has made a profound impression this year, and the bullish momentum may very well continue into the second half.