The Nasdaq Composite (NASDAQINDEX: ^IXIC) rebounded in spectacular fashion last year. After nosediving 33% in 2022 (its worst performance since the Great Recession), the index soared 43% in 2023. Given its tech-focused composition, the excitement surrounding generative artificial intelligence (AI) was a substantial tailwind, and ongoing innovation in the space could propel the Nasdaq higher in the future.

Meanwhile, the broad-based S 500 was less than a percentage point from reaching a new record high last week, an event that will signal the onset of a new bull market. The S 500 is considered a benchmark for the entire U.S. stock market, and it returned an average of 186% during each of the last nine bull markets.

Now factor in the fact that the Nasdaq has historically compounded much more quickly than the S 500. The technology-centric index doubled the performance of the S 500 over the last three decades, and that outperformance could be magnified during the next bull market.

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Source Fool.com