The Nasdaq Composite posted its best quarter since 2020 on Thursday, as the latest inflation data provided a boost to the tech-heavy index.
The Nasdaq rose 1.2% to close at 13,457.25, its highest level since February 2020. The index gained 8.2% in the first quarter, its best performance since the fourth quarter of 2020.
The Nasdaq was buoyed by the latest inflation data, which showed that consumer prices rose 0.4% in March, the largest monthly increase since August 2020. The data was seen as a sign that the economy is recovering from the pandemic-induced recession.
The Nasdaq was also supported by strong earnings from tech giants such as Apple, Microsoft, and Amazon. Apple reported a record quarter, with revenue up 54% year-over-year. Microsoft reported a 20% increase in revenue, while Amazon reported a 44% jump in sales.
The Nasdaq was also boosted by a surge in the price of Bitcoin, which rose to a record high of $63,000 in the first quarter. The cryptocurrency has been a major driver of the Nasdaq’s rally, as investors have sought out alternative investments amid the pandemic.
Overall, the Nasdaq’s strong performance in the first quarter is a sign that the economy is on the road to recovery. The index is up nearly 40% since the start of the year, and is on track to post its best year since 2020. With the latest inflation data providing a boost, the Nasdaq could continue to climb in the coming months.