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Nasdaq-100 ETF Hits Record High: 5 Stocks Powering the Rally

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Optimism swept the broader market on Aug 17 with the S&P 500 briefly breaking the record close it had hit in February and the Nasdaq hit a record high yet again. Decent earnings releases, hopes of an economic recovery in 2021, developments on vaccines, and easy global monetary policy have also been aiding the market.

In fact, the potential economic recovery in 2021 will “boost the S&P 500 to 3,600 by the end of the year, Goldman Sachs said, bumping its target for the index by 20% as it trades within striking distance of a record high,” per Goldman Sachs, as quoted on Reuters.

On the virus front, fears are subsiding. Virus-related hospitalizations in Texas and California have been exhibiting a downtrend. America reported just over 42,000 new COVID-19 cases for Sunday, down from a one-week average of 51,523 daily cases, according to New York Times data, as quoted on MarketWatch.

Among other positive developments, President Trump announced that the U.S. government will buy 100 million doses of Moderna’s coronavirus vaccine. Moderna, AstraZeneca, Pfizer and Johnson & Johnson are some of the prominent names in the vaccine research field, whose candidates are showing promise.

Moreover, the tech-heavy Nasdaq Index outdid others in the peak of the pandemic due to greater rallies in the technology sector or socially-distant stocks, and continues to outperform even after the reopening of economies. So, the Nasdaq will continue to rule ahead, with or without coronavirus fears.

As a result, Invesco QQQ (QQQ), which serves as a proxy for the index, gained 1.2% on Aug 17 and added 0.17% after hours. It hit an all-time high at 275.84. Against this backdrop, below we highlight a few stocks that helped the index to hit a new high on the day.

Tesla Inc (TSLA - Free Report) – Up 11.2% on Aug 17

Investors should note that Tesla is an important component of Nasdaq. This producer and seller of electric cars, solar energy generation systems and energy storage product added 11.2% on Aug 17. Wedbush analyst Dan Ives recently upgraded Tesla to $1900. Tesla is currently sitting at $1,835.64.

JD.Com Inc (JD - Free Report) – Up 7.93%

JD.com, Inc. operates as an online direct sales company in China. It has been benefiting from e-commerce sales and solid user growth amid the coronavirus outbreak. On Aug 17, the company reported better-than-expected earnings results and shares soared.

NVIDIA Corp (NVDA - Free Report) – Up 6.68%

Nvidia surged on the hopes of “strong” earnings.  Huge demand for graphics chips in data centers and a solid presence in the gaming market have helped the company this year. Nvidia's data center segment skyrocketed 80% year over year and surpassed $1 billion in sales for the first time in the first quarter. The company’s presence in the gaming zone is also a positive. Susquehanna analyst Christopher Rolland raised his price target to a Street high $540 from $450, as quoted on MarketWatch (read: Nvidia Tops Intel by Market Cap: ETFs to Buy).

Ross Stores, Inc. (ROST - Free Report) – Up 3.26%

Ross Stores is an off-price apparel and home fashion retailer. The retail behemoth gained on upbeat earnings hopes. The company is due for Q2 earnings on Aug 20.

Microchip Technology Incorporated (MCHP - Free Report) – Up 3.15%

Microchip Technology develops and manufacturers microcontrollers, memory, analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks. It reported better-than-expected earnings in early August.

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