U.S. stocks closed higher on Monday, with the Nasdaq above the psychologically key level of 5,000 for the first time since March 2000 and the Dow and S&P 500 at records as investors cheered U.S. economic data and an interest rate cut in China.
“We’ve got economic data that continues to move things forward. I would much rather see 5,000 on improving economic data than the (conditions we had in March 2000),” said Art Hogan, chief market strategist at Wunderlich Securities.
The Nasdaq Composite last hit 5,000 during the tech bubble peak in March 2000. The index tumbled in the months following to land at 1,108.49 in October 2002.
The Nasdaq only closed above 5,000 twice before, once on March 9, 2000, and once on March 10, 2000.
“It is different this time,” said Mark Spellman, portfolio manager at Alpine Funds. “Some of the companies are (reaching these levels) with earnings and cash flow.”
Both the S&P 500 and Dow Jones industrial average also closed at new records.
