The Nasdaq Composite closed flat on Wednesday, with a modest 0.04 percent gain. For the day, the tech-heavy index moved a mere 7.43 points to close at 7,438.43.
But a deeper look into the data shows that some areas of the market were outperforming the broader index. Here are the three top Nasdaq sectors that outpaced the tech-focused index, and what to make of them.
1. MEM TV – The MEM TV sector, which consists of streaming and media entertainment companies, gained 4.21 percent for the day, its best performance since mid-November. The sector was the top performing Nasdaq industry group on Wednesday, a sign that investors are betting on growth in this sector. Companies such as Apple TV+, and the upcoming HBO Max, are beginning to gain traction in the streaming wars, and investors appear to be buying into the trend.
2. Online Brokerages – Online brokerages, which have been one of the primary beneficiaries of the stock market’s bull run, gained 2.38 percent for the day. With low interest rates and record levels of cash on the sidelines, investors have been eager to move their money into the markets, and this sector has been one of the big benefactors. Companies like TD Ameritrade and E-Trade have seen their shares surge over the last year.
3. Biotech – The biotech sector was up 1.64 percent Wednesday, as investors remain bullish on drug makers and their potential for new product development. In the last few months, companies like Gilead Science and Moderna have seen share prices skyrocket as they continue to develop promising new treatments and therapies. These companies are seen as having some of the most potential in the market at the moment, and investors appear to be betting on it.
Overall, Wednesday was a mixed day for the Nasdaq, but closer examination shows that investors continue to look towards sectors like MEM TV, online brokerages, and biotech for strong returns. It will be interesting to see if these trends continue in the coming weeks, and if the Nasdaq Composite can continue its march higher.