Nasdaq cracks 3,000, but stocks fall
Wednesday, February 29, 2012
The Nasdaq composite index briefly broke through 3,000 on Wednesday for the first time since the collapse in dot-com stocks more than a decade ago. Stocks ended lower, but it was still the best February in 14 years.
The milestone for the Nasdaq, heavy with technology stocks, came a day after the Dow Jones industrial average closed above 13,000 for the first time since May 2008.
Apple, the Nasdaq’s biggest component, topped $500 billion in market value, the only company above the half-trillion mark and only the sixth in U.S. corporate history to grow so big. Apple might reveal its next iPad model next week.
The Nasdaq last hit 3,000 on Dec. 13, 2000. Its last close above 3,000 was two days earlier. It was only above 3,000 for seconds on Wednesday before closing down 19.87 points at 2,966.89.
The Dow lost 53.05 to close at 12,952.07. The Standard & Poor’s 500 index fell 6.50 points to close at 1,365.68.
For the month, the Dow gained 2.5 percent, the S&P 4.1 percent and the Nasdaq 5.4 percent. The last time the stock market had such a strong February was in 1998, when the S&P gained 7 percent.
Stocks opened higher after the government said that the economy grew faster at the end of last year than previously estimated — a 3 percent annual rate, the best reading since the spring of 2010.
Stocks fell sharply after about an hour, then recovered by mid-afternoon, after the Federal Reserve’s survey of regional economic conditions said the economy strengthened in the first six weeks of the year.