Nasdaq tops 5,000 mark

It had to happen. The Nasdaq composite of high-tech stocks has broken through the 5,000 points barrier.

It was only two months ago that it breached 4,000 for the first time.

But the insatiable demand for technology shares has made a continued upward surge seem effortless and inevitable.

At the close of trading on Thursday, the Nasdaq was up 149.60, or 3%, at 5,046.86.

Up 24% this year

That easily topped its previous record close of 4,914.79, set last Friday.

The shares that helped push it above the latest magic mark included Dell, which climbed 3.5 to 50.5, and Cisco Systems, up 7 to a record 139.25.

So far this year, the Nasdaq is up 24%, while the Dow Jones Industrial Average, which has been depressed by concerns about industrial company profits, is down 13%.

"A lot of people are tired of hearing about the new economy vs. the old economy, but that's where it comes down," said Ralph Acampora of Prudential Securities.

'Legitimate shift'

"If you're an astute observer, your portfolio will reflect what's new and exciting and dynamic. A lot of those are the companies that are in the Nasdaq."

He said he expects the Nasdaq to reach 6,000 within 12 to 18 months.

Ethan Harris of Lehman Brothers told the BBC: "Our feeling is that the move towards new economy stocks is really going to be a long-run sustained process.

"It may ease off here and there, we may find the Nasdaq being a little overvalued at some point, but in general its the way of the future. This is a legitimate structural shift in the economy and it will continue."