August 16, 2022

The Nasdaq Composite Index on Monday afternoon was surging more than 3% higher, putting the technology-laden index within striking distance of exiting a plunge into correction territory produced back on Sept. 8. A drop of at least 10% for an asset from a recent peak is the commonly used definition on Wall Street for a correction, while putting in a new high after that decline is often viewed as that asset exiting that bearish phase of trading. The Nasdaq Composite COMP, -1.01% sank into correction–after putting in its most recent record high on Sept. 2–early last month but is now nearing a new record peak above 12,056.44, putting the benchmark about 0.8% from its all-time high, according to FactSet data. The Nasdaq has been powered higher by a handful of stocks in its resurgence from its March lows and Monday’s trade was no different, with Facebook Inc. FB, -2.20% Apple Inc. AAPL, -1.04%, Amazon.com [: AMZN], Netflix NFLX, -0.19% and Google parent Alphabet Inc. GOOG, -0.14% GOOGL, -0.09% all rising sharply on the day. The contingent of stocks, known informally as FAANG (and sometimes including Microsoft Cor. MSFT, -1.13%, has helped to lift the broader market by dint of the market value those handful of those companies. The Nasdaq Composite was recently trading up 3.2% at 11,955, coming after brisk run-up for the index on Friday. The broader market also was gaining altitude briskly, with the Dow Jones Industrial Average [: DJIA] rising 1.1% and the S&P 500 index SPX, -0.73% climbing 2% to 3,547. The S&P 500 had threatened to fall into correction, with a drop to 3,222.76 from its recent September peak, but managed to avoid a close at that level.

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