Nasdaq Stock Index Overview for Q3 2024
Review for the Year to Date, Best and Worst Stock Traders, and Impacts for Q4 – US Nasdaq Stock Index
The world of finance is heavily centred on the Nasdaq Stock Index as it contains some of the greatest growth and technological companies in the world. World events and rise in interest rates seemed to strick the Nasdaq despite the tech heavy index recovering. On basically all bases including recession, inflation, and global uncertainty, things seemed rather tumultuous at the start of the year as market costs and supply chain disruptions were a fact. However, as the 30 September 2024 buzzes around, there is sustained optimism as the key growth and tech stocks are the ones that boosted the Nasdaq to this level.
The focus of this article is to provide a real-time picture of the Nasdaq index, concentrating our attention on the period from January 1, 2024 up to September 30, 2024 in which stocks that were performing the best and the worst were established; trends and direction of stock prices will also be explored. A forecast for Q4 2024 will be offered, followed again by questions and answers, accompanied by an analysis of the forthcoming quarter in light of the stocks that we will currently hold.
YTD Analysis of the Nasdaq Index in 2024
At the beginning of 2024, the Nasdaq Composite was hovering around 12000 muscle points as tech holdings were under the pressure of inflation, rates hikes by the Federal Reserve, and importantly, of investors’ nerves. Such dynamics caused ups and downs in the market throughout the Q1 and Q2, as there was a reasonable worry of recession. However, in Q3 2024, a significant number of tech stocks such as AI and Cloud and e-commerc came out of earnings season and delivered decent beat results helping the stocks to recover sharply.
The Nasdaq managed to rise to around 12900 plenary points thereby accomplishing a commendable 7.5 percent rise on its YTD. By far, this index was better compared to its peers such as the Dow Jones and the S&P 500, showing that the tech and growth sectors are still ruling the markets regardless of the economic conditions.
Main Areas Affecting the Performance of Nasdaq in 2024
1. Federal Reserve Interest Rates: Throughout the year 2024, the Fed has shown the will to control inflation by increasing interest rates. Although this affected growth stocks for a while, companies enjoying good earnings, especially in technology managed to recover strongly in the second half of the year.
2. Artificial Intelligence (AI) Technologies – The widescale adoption of AIs including leverage in machine learning and natural language processing technologies pushed for growth in Semiconductors, Software and cloud computing industries.
3. Corporate Earnings: Amid the dominant shadow of the economic picture, Apple, Microsoft, and Nvidia topped expectations in Q3. This drove the overall market performance.
4. Geopolitical Risks: The confrontation of the Russia-Ukraine conflict and the increasing tension between the U.S. and China affected the supply chain problems, particularly in the semiconductor sector, but also opened new growth areas in defense technology and cyber security.
Top 20 Best Performing Stocks In Nasdaq YTD (Q3 2024)
Below is the table of 20 best performing stocks in the Nasdaq Composite index for a period of 1 January 2024 to 30 September 2024. The starting price, the closing price, the highest price, the lowest price and the ROI of each stock are also provided for each stock. For the sake of convenience the ROI column is skyped to show stocks with the highest returns for this period.
| Stock | Start Price (Jan 1) | End Price (Sept 30) | Highest Price | Lowest Price | ROI (%) |
|---|---|---|---|---|---|
| Nvidia Corporation (NVDA) | $250 | $410 | $435 | $240 | 64.00% |
| Advanced Micro Devices (AMD) | $85 | $136 | $150 | $82 | 60.00% |
| Meta Platforms Inc. (META) | $130 | $202 | $210 | $120 | 55.38% |
| Tesla Inc. (TSLA) | $220 | $325 | $340 | $210 | 47.73% |
| Amazon.com Inc. (AMZN) | $100 | $146 | $155 | $95 | 46.00% |
| Microsoft Corporation (MSFT) | $250 | $365 | $375 | $245 | 46.00% |
| Alphabet Inc. (GOOGL) | $90 | $128 | $135 | $88 | 42.22% |
| Apple Inc. (AAPL) | $135 | $192 | $200 | $130 | 42.22% |
| PayPal Holdings Inc. (PYPL) | $70 | $98 | $105 | $68 | 40.00% |
| Netflix Inc. (NFLX) | $300 | $420 | $440 | $290 | 40.00% |
| Adobe Inc. (ADBE) | $350 | $490 | $505 | $340 | 40.00% |
| Broadcom Inc. (AVGO) | $600 | $835 | $850 | $590 | 39.17% |
| Salesforce Inc. (CRM) | $190 | $258 | $265 | $180 | 35.79% |
| Qualcomm Inc. (QCOM) | $110 | $148 | $155 | $105 | 34.55% |
| Intuit Inc. (INTU) | $390 | $515 | $530 | $380 | 32.05% |
| ServiceNow Inc. (NOW) | $450 | $580 | $595 | $440 | 28.89% |
| Uber Technologies Inc. (UBER) | $32 | $40 | $45 | $30 | 25.00% |
| Spotify Technology (SPOT) | $90 | $112 | $120 | $85 | 24.44% |
| DocuSign Inc. (DOCU) | $50 | $62 | $65 | $45 | 24.00% |
| Zoom Video Communications (ZM) | $70 | $86 | $92 | $65 | 22.86% |
Top 20 Worst- Performing Stocks In Nasdaq YTD (Q3 2024)
Below is the table of 20 stocks that performed poorly in the first three quarters of 2024 in the Nasdaq. Such companies encountered serious difficulties because of other market changes, sectoral drag, or weak earning reports.
| Stock | Start Price (Jan 1) | End Price (Sept 30) | Highest Price | Lowest Price | ROI (%) |
|---|---|---|---|---|---|
| Rivian Automotive (RIVN) | $20 | $12 | $22 | $11 | -40.00% |
| Peloton Interactive (PTON) | $10 | $6 | $11 | $5 | -40.00% |
| Lyft Inc. (LYFT) | $15 | $10 | $16 | $9 | -33.33% |
| Robinhood Markets (HOOD) | $12 | $8 | $13 | $7 | -33.33% |
| Zoom Video Communications (ZM) | $70 | $48 | $78 | $45 | -31.43% |
| Beyond Meat Inc. (BYND) | $15 | $11 | $16 | $10 | -26.67% |
| Lucid Group Inc. (LCID) | $10 | $8 | $12 | $6 | -20.00% |
| Teladoc Health Inc. (TDOC) | $25 | $20 | $30 | $18 | -20.00% |
| Coinbase Global Inc. (COIN) | $50 | $40 | $55 | $35 | -20.00% |
| Block Inc. (SQ) | $60 | $50 | $65 | $48 | -16.67% |
| Snap Inc. (SNAP) | $9 | $7.5 | $10 | $6.5 | -16.67% |
| Pinterest Inc. (PINS) | $25 | $21 | $26 | $19 | -16.00% |
| Warby Parker (WRBY) | $15 | $13 | $16 | $12 | -13.33% |
| RingCentral Inc. (RNG) | $35 | $30 | $38 | $28 | -14.29% |
| Unity Software (U) | $30 | $26 | $34 | $24 | -13.33% |
| DraftKings Inc. (DKNG) | $18 | $16 | $20 | $14 | -11.11% |
| Roku Inc. (ROKU) | $70 | $62 | $75 | $55 | -11.43% |
| DoorDash Inc. (DASH) | $50 | $45 | $55 | $40 | -10.00% |
| WeWork Inc. (WE) | $5 | $4 | $6 | $3.5 | -20.00% |
| Palantir Technologies Inc. (PLTR) | $15 | $12 | $18 | $10 | -20.00% |
Outlook for the last quarter of 2024: Sectors and shares to focus on
The templates of quarter 4, 2024 offer multiple views with regards to performance of the stock market. The interest rate policies, earnings of corporations and the international economy will all play critical roles. Here are a few stocks to watch in the final quarter:
1. Nvidia Corporation (NVDA)
– Uptrend: Semiconductor’s demand in the data centers and autonomics is poised to work positively for Nvidia, thanks to the AI breakthrough.
2. Tesla Inc. (TSLA)
– Uptrend: Entering in newer markets and leading the electric vehicles sector, doesn’t come as a surprise that Tesla will post strong figures in Q4.
3. Meta Platforms Inc. (META)
– Uptrend: Development of the metaverse by Meta and the AI powered advancements would keep the sales outlook growing.
4. Amazon.com Inc. (AMZN)
– Uptrend: Increased e-commerce in the holiday shopping months and AWS revenue will help to increase chances post performance by Amazon.
5. Advanced Micro Devices (AMD)
– Uptrend: AMD is estimated to achieve strong performance in Q4 2024 and because of increasing AI and semiconductor markets.
Q&A Section
Q: What were the factors that influenced Nasdaq’s performance in 2024?
A: The factors that affected this development were the rises in rates that were made by the Federal Reserve, corporate earnings resulting from the activities of tech giants, and the growing needs for AI and cloud computing. The general recovery in consumer spending was, by definition, a positive factor as well.
Q: Which sectors had the biggest impact on the performance of Nasdaq?
A: The best performing sectors included the technology, artificial intelligence, and e-commerce while the biotechnology, media and cryptocurrency related sectors were the underperformers.
Q: What opportunities and risks would investors face in Q4 2024?
A: Investors in this case will need to look out for changes in the interest rates.
Conclusion
For the third quarter of the year 2022, we note that the Nasdaq stock index has recorded a gain of 7.5% year to date, mostly driven by technology and growth areas. Top performers included Nvidia, AMD, and Meta, who triumphed with the AI and innovation waves. In the interim, companies like Rivian and Peloton experienced some challenges owing to company and sector-specific headwinds. As we enter the Q4 2022, there’s positive sentiment that the Nasdaq will be pushed up further owing to trends in technology, AI, and e-commerce, assuming other factors remain constant. It will be imperative as we enter the last quarter of the year to watch out for the companies that stand strong in terms of earnings prospects and growth.
