Nasdaq breaks 24,000 intraday: AI chips and biotech drive rally as Asian capital pours in

Nasdaq hits another milestone: AI and biotech dance together

August 5, 2026, marked a landmark moment for the US stock market. The Nasdaq Composite Index broke through the 24,000-point level for the first time in intraday trading, reaching a high of 24,018.52, continuing the tech bull market's glorious chapter. Despite a slight pullback near the close due to some profit-taking, the Nasdaq still closed up 0.87% at 23,950.33. This historic breakthrough comes less than three months after the index surpassed 23,000, demonstrating the strong resilience of tech growth stocks in the current macro environment.

Behind today's market action were two core engines firing simultaneously: the continued explosion in AI infrastructure demand and a sudden major regulatory catalyst in the biotech sector. For investors in Asia, this is not just an index-level celebration, but a profound revelation about the structural transformation of the technology industry.

AI chip demand defies pullback fears, computing power leader beats expectations again

The market had previously worried that the AI rally was entering a "narrowing phase," but a core AI computing infrastructure supplier's second-quarter earnings report released before the market opened today completely dispelled those doubts. The company not only reported revenue growth exceeding 130% year-over-year, but its next-quarter revenue guidance far exceeded the most optimistic analyst estimates on Wall Street. Management emphasized during the earnings call that with the deployment of next-generation large language model training clusters and the exponential explosion in enterprise-level AI inference demand, order visibility for high-performance computing chips has extended into 2027.

Boosted by this news, the company's stock price surged over 12% in a single day, driving the Philadelphia Semiconductor Index up more than 4%. Meanwhile, related data center power management, liquid cooling, and high-speed optical module suppliers all saw linked limit-up waves. This indicates that the AI investment theme has expanded from pure foundational model training to a broader build-out of AI infrastructure. For Asian investors, this signals a key point: the AI hardware support system remains in a high-growth cycle, and every technical pullback may be an opportunity to reassess allocation windows.

Gene-editing therapy approved, biotech sector sees collective breakout

If AI is the "ballast" driving the Nasdaq's steady ascent, then biotech was the sudden "surprise force" that turned the tide in late trading. The US Food and Drug Administration (FDA) unexpectedly granted accelerated approval today to a revolutionary gene-editing therapy for a rare inherited eye disease. This marks a major expansion of CRISPR technology beyond sickle cell disease into common complex disease areas, hailed by the industry as opening a new era for in vivo gene-editing treatments.

Spurred by this news, multiple mid-cap biotech stocks saw vertical surges in afternoon trading, with the Nasdaq Biotechnology Index (NBI) surging 3.8% in a single day. Market analysts point out that with the Federal Reserve about to enter a rate-cutting cycle, highly interest-rate-sensitive biotech stocks are welcoming a spring of valuation repair. As financing costs decline, the value of innovative drug pipelines will be repriced. While focusing on mega-cap tech stocks, Asian investors should not ignore the bottom-volume reversal signals in the biotech sector.

Capital flow perspective: Defensive retreat, growth stocks regain favor

Looking at today's sector rotation, funds previously crowded into defensive high-dividend utilities and consumer staples sectors began to flow back into growth stocks. US sector rotation monitoring data shows that both technology ETFs and biotech ETFs recorded their largest single-day net inflows in nearly two months. Meanwhile, traditional energy and financial sectors lagged relatively behind.

The logic behind this capital migration is: with Q2 GDP growth unexpectedly strong at 3.2%, market confidence in a "soft landing" or even "no landing" has strengthened, and risk appetite has significantly rebounded. For investors in Asia, this sector rotation means that pure passive index investing may not outperform the market, making stock picking and grasping industry rhythm more important.

Asian investor strategy: Seeking structural opportunities amid high-level volatility

Facing the Nasdaq standing at the 24,000-point high, many Asian investors fear both missing out and heights. From post-market trading data, US stock futures during Asian hours show that some funds are beginning to hedge slightly through Nasdaq 100 index futures, but overall net long positions are still increasing.

Analysts suggest that at current levels, Asian investors should not blindly chase already crowded AI giants, but adopt a "core plus satellite" strategy. Core positions should continue to hold tech giants with strong cash flow and buyback capabilities, while satellite positions can moderately tilt toward sub-sectors like biotech, cybersecurity, and industrial software benefiting from AI empowerment. Additionally, given that the Volatility Index (VIX) is at a relatively low level, buying protective put options is also a cost-effective risk management tool at present.

Looking ahead to the August market, with the Jackson Hole global central bank symposium approaching, market expectations for the Fed to start cutting rates in September are already fully priced in. As long as macro liquidity does not tighten unexpectedly, US stocks still have room to continue grinding higher after a brief digestion period. For Asian investors, leveraging the depth and breadth of the US stock market to find certainty amid sector rotation will be key to outperforming the market in the second half of 2026.