The Nasdaq index’s year-to-date gain of more than 33% is far outpacing the Dow Jones Industrial Average’s rise of 23% and the 27% rally in the S&P 500. Fueling the Nasdaq’s rally is a hunt by investors to find faster-growing companies in an economy that has yet to show a sustained acceleration.
But unlike the Dow and the S&P 500, which are far into record territory, the Nasdaq remains roughly 20% below its dot-com-era peak. The index hit its all-time high of 5048.62 on March 10, 2000. On Tuesday it closed at 4017.75, up 23 points or 0.58% for the day.
Data showed demand for home building permits jumped 6.2% in October to an adjusted annual rate of 1.034 million, the highest level in more than five years. Economists had projected a rise to a pace of 930,000. The S&P/Case-Shiller 20 City home-price index for September rose 13.3% on the year, slightly better than expectations for it to show a rise of 13%.
The Conference Board’s consumer-confidence index for November unexpectedly fell to 70.4 from 71.2 in October. Economists expected the index to show a rise to 73.0. The Conference Board said uncertainty about future employment and income prospects could make this a challenging holiday season for retailers.