Nasdaq-100 up 25% as tech gains echo 1990s

The Nasdaq-100 index rose 25% in the quarter through June 12, 2026, driven by SpaceX’s initial public offering, stronger-than-expected corporate earnings and demand for AI computing infrastructure. The rally mirrors gains seen during the late 1990s Internet expansion.

Horizon Investments’ asset management team wrote in a June 16 commentary that the index climbed about 173% over the past 864 trading days, compared with a 192% return over a similar span in the mid-1990s. The late-1990s surge saw the Nasdaq-100 rise more than 1,000% from 1995 into early 2000. After the market adjustment that followed, the index still delivered roughly a 290% gain over the seven years through 2001, equal to about a 21% compound annualized return for that period.

Market participants and analysts pointed to several immediate drivers. The SpaceX IPO brought fresh capital and investor attention to large-cap technology and space-related firms. Quarterly results for many technology companies exceeded expectations. Investment in cloud providers, semiconductor manufacturers and data-center operators rose as demand for AI computing capacity increased. Horizon’s note also listed a robust job market, typical seasonal market patterns and the prospect of an easing in the Iran conflict as additional supportive factors.

Observers are monitoring valuation measures and the concentration of gains within a subset of companies. Recent advances have been concentrated in firms tied to AI development, cloud services and high-growth consumer platforms, prompting scrutiny of breadth and the persistence of earnings growth. At the same time, employment data and corporate profit figures have provided support for the rally in recent quarters.

Investors and advisers are adjusting exposure and watching company-level signals. Some portfolio managers reported reducing allocations to large-cap technology and AI-related names, while others are tracking upcoming earnings reports and capital expenditure plans for signs of sustained revenue growth. Analysts identified regulatory developments, semiconductor supply-chain constraints and changes in enterprise spending on AI tools as factors that could affect the next phase of the market.

Horizon’s June 16 commentary included standard disclosures that past performance does not predict future results and that the note does not constitute investment advice. The firm advised investors to consider their own financial situations before making decisions.