Nasdaq blows past 5,000

The Nasdaq composite index closed above the 5,000 barrier Thursday while setting its 15th record close of the year as investors continued to climb on the "new economy" bandwagon.

The tech-heavy index jumped 149.60 points, or 3.0 per cent, to 5,046.86 on the day.

It took the Nasdaq three years to get from 1,000 to 2,000. It took less than three months to go from 4,000 to 5,000.

Investors have been flocking to Nasdaq-listed companies, betting that Internet firms and telecom companies will grow much faster than so-called "old economy" stocks, such as industrial companies, financial and pharmaceutical firms and consumer products producers.

The Nasdaq has far outperformed the Dow Jones Industrial Average recently-- the traditional market benchmark. For example, so far this year, the Nasdaq is up more than 20 per cent, while the Dow is off 12.7 per cent.

The Nasdaq is now the busiest stock market in the world, trading an average of 1.7 billion shares a day during the first two months of 2000. Its trading value is also the biggest.