Since stocks began trading on the , the index has produced negative annual returns only 14 times. What's more, the index has dropped by at least 30% on just three occasions over the last two decades.

What investors might not realize is that following these steep drops in 2002 and 2008, the Nasdaq went on a rally for consecutive years thereafter.

Similarly, following a harsh 2022, the Nasdaq rebounded sharply last year -- returning 43%. This was largely driven by euphoria surrounding artificial intelligence (AI) in the tech industry. With 2024 getting off to a red-hot start, further gains could be in store for investors.

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Source Fool.com