What a day for the share market this Friday is turning out to be. And not just for the ASX and the S&P/ASX 200 Index (ASX: XJO), which just hit a fresh new all-time high. The ASX's new high follows another record that's just been reset across the Pacific. The Nasdaq Composite (INDEXNASDAQ: .IXIC) closed at a record high as well last night.
Yep, the Nasdaq finished its Thursday session this morning at 16,091.92 points, the highest this index has ever closed at.
Unlike the other major US indexes like the S&P 500 Index (INDEXSP: .INX) and the Dow Jones Industrial Average (INDEXDJX: .DJI), the Nasdaq hasn't been printing new record highs of late, with the index unable to overcome the highs we saw back in late 2021.
But that's all changed now, and the Nasdaq is now once again exploring record territory.
So what does this all mean for ASX shares?
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What does the Nasdaq's new record high mean for ASX shares?
Well, for one, we can tangibly see the impact of the soaring US markets on our own ASX. There's no doubt that the heights that the US markets as a whole have been exploring of late have boosted sentiment on our local markets.
It's hard to call the ASX 200's gain of 13.7% since the start of November a coincidence considering the Nasdaq Composite is also up more than 27% since then.
But we can also see more direct evidence of the Nasdaq's rise on the ASX. Take the BetaShares Nasdaq 100 ETF (ASX: NDQ). This exchange-traded fund (ETF) tracks the largest 100 non-financial companies on the Nasdaq Composite.
Just today, we've seen NDQ units hit a new all-time record high as well – $42.10 a share. ASX investors in this popular index fund have now enjoyed a whopping gain of 52.53% over the past 12 months.
But what about the rest of the ASX?
Well, the Nasdaq's rally has been headed by the continuing surge in valuations of some of the US's largest tech shares.
Some of the biggest propellers of the broader Nasdaq have been Meta Platforms (up 41.54% in 2024 to date), Amazon (up 17.9%) and Netflix (up 28.69%).
But there's no question that the company in the driving seat is NVIDIA. Nvidia's shares have soared a massive 64.24% in 2024 so far, helped of course by mind-blowing earning figures that continue to dazzle even tech veterans.
But it looks likely that this rise in artificial intelligence (AI) and semiconductor giant Nvidia is also fuelling a boom amongst similar ASX stocks.
ASX tech shares feel the love
Some of the biggest gainers this year have been ASX tech shares. To illustrate, the BetaShares S&P/ ASX Australian Technology ETF (ASX: ATEC), which can be thought of as a barometer of the ASX tech sector, has also hit a new record high this Friday. ATEC units are now up a stinking 14.36% over the year to date.
Other shares that compete in the same space as Nvidia have also seen a boom in interest. Brainchip Holdings Ltd (ASX: BRN) shares, for example, have galloped almost 114% higher over 2024 so far.
So we're clearly feeling the effects of the Nasdaq's surge here on the ASX. Let's see what the rest of the year brings for ASX (and US) tech investors.
