The year 2024 has been an unexpectedly prosperous one for the stock market. While initial predictions called for a modest 1% increase, the Nasdaq has surged more than 22% and the S&P 500 has seen a 16% jump. This week, three new records were set on Wall Street, including the Nasdaq 100 crossing 20,000 points for the first time, the Nasdaq composite closing above 18,000 points, and the S&P 500 passing the 5,500-point mark.
Investors have been flocking to technology stocks this year, as evidenced by the Nasdaq’s outperformance of other indices. While both indices offer exposure to technology giants like Apple and Google, the Nasdaq is more heavily focused on these companies and tends to have higher returns in periods of growth. On the other hand, the S&P 500 is considered a benchmark index that represents about 80% of all US-traded stocks and offers broader diversification across various industries.
When it comes to investing in Israel’s stock market, investors tend to prefer the S&P 500 over the Nasdaq due to its lower volatility and greater stability. However, there are still opportunities for investors who are willing to take on some risk in order to potentially achieve higher returns with technology investments through mutual funds that mimic their performance. It’s important for investors to weigh their investment goals and risk tolerance when deciding between these two popular indices.
