Nasdaq ETFs Won in May: Further Rally Expected Ahead
Nasdaq Proving the famous adage "Sell in May and Go Away" wrong, the Nasdaq recorded five consecutive weeks of gains and added approximately 6% over the past month, led by the AI-powered charge of mega-cap Tech.
The Nasdaq Composite has established a substantial lead over the Dow Jones Industrial Average this year, with a margin of outperformance reaching over 19%. This is the widest margin of outperformance seen since 1991, according to Dow Jones Market Data, as quoted on MarketWatch.
Based on the Dow Jones Market Data, this marks the first time since the Nasdaq's inception in 1971 that the index has recorded a year-to-date increase of more than 21% while the Dow has remained in negative territory for the year.
Whats Behind Nasdaqs Gain
Chances of the Federal Reserve cutting interest rates or staying put, lower Treasury yields, U.S. recession fears, continued regional banking crisis in the United States and the AI mania are driving interest in mega-cap technology names, which appear to be safe bets.
