As the U.S. stock market continues to crash, investors have started to worry about the chances of a full-blown market crash. The question is one that nobody can answer definitively. However, one indicator is sending a strong message to investors about the current situation – there is a zero percent chance of a market crash.
The indicator in question is the National Association of Securities Dealers (NASD) Automated Quotations (Nasdaq) Composite Index. This index measures the performance of the tech-heavy Nasdaq stock market. It is made up of more than 3,300 equities and reflects the performance of all the companies listed on the Nasdaq.
Fortunately, the Nasdaq Composite Index’s recent performance suggests that a full-blown market crash is highly unlikely. Since February 2020, it has increased steadily and is now trading about 12 percent higher than it was at the start of the year. The index’s strength indicates that tech stocks have been leading the U.S. stock market higher.
The strength of the Nasdaq Composite Index also suggests that investors are not overly concerned about the potential economic repercussions of the coronavirus pandemic. Instead, investors seem to be focusing more on the longer-term potential of the tech sector. This is reflected in the strong performance of tech stocks, which have been the main drivers of the Nasdaq Composite Index.
So, based on the Nasdaq Composite Index’s performance, investors should not be overly worried about a full-blown market crash. Instead, they should focus on the tech sector and look for stocks that show long-term potential. While the market could still suffer some dips and bumps, it is unlikely to experience a full-scale crash.
In conclusion, investors should take comfort in the Nasdaq Composite Index’s strong performance. This suggests that a market crash is highly unlikely and that tech stocks are likely to continue to be the driving force behind the U.S. stock market. So, instead of worrying about a potential market crash, investors should focus on finding stocks that have long-term potential.